The European Central Bank has indicated that more hikes could be on the way after they raised their interest rates to a 22-year high of 3.5% on Thursday.
The ECB has just increased its key lending rate by 0.25 percentage points to 4%, which is the eighth rise since last summer.
However, Bundesbank President Joachim Nagel said: “We still have more ground to cover,” indicating that further increases could lie ahead.
He added: “We may need to keep raising rates after the summer break."
"Once we have reached the peak, we will stay there until we are sure of a safe and timely return of inflation to our 2% target.”
His comments came after ECB president Christine Lagarde told a press conference yesterday that the bank “was not thinking about pausing” interest-rate increases.
The latest increases means that tracker mortgage holders will see an almost immediate increase in their monthly repayments.
Each 0.25 percentage point rise in mortgage rates adds €156 a year to the repayments on every €100,000 borrowed.
