The European Central Bank has increased interest rates by a further 0.5%.
This is the fourth time in-a-row that the ECB have increased rates with the bank signalling that more would follow in the New Year in a bid to fight against inflation.
The latest increase sees rates jump to 2.5% from 0% in July but was a slowdown from the 0.75% increases in each of the bank’s two previous meetings.
Around 200,000 tracker mortgage holders here can expect to see an almost immediate increase in their mortgage repayments.
The rate hike will add another €45 a year to the mortgage bills of a homeowner on a 30-year tracker mortgage of €200,000.
The total increases from July will cost a borrower around €220 a month and over €2,600 a year more.
Those on variable rates are also forecast to see an increase in their repayments over the coming weeks although the main lenders here have not yet increased their variable rates in response to any of the previous ECB increases.
The ECB will meet again in February.
