The European Central Bank has raised its interest rate by a further quarter of a percentage point.
The latest increase, the ninth in a year, leaves the key refinance rate at 4.25% - the highest level since 2000.
The latest increase will force most tracker rates to rise to 5.25%, adding another €12 a month to repayments for a family with €100,000 left to pay. Over a year this works out at €144 from the latest rise alone.
If the latest rate rise is fully passed on by banks on fixed rates, it will mean repayments on a typical first-time buyer mortgage of €300,000 will rise by €45 a month or €540 a year.
More than 60,000 homeowners who were due to come to the end of a fixed rate this year have been warned to start budgeting now for higher borrowing costs, with typical fixed rates expected to be around 5% by the end of the year.
ECB President Christine Lagarde told a press conference on Thursday that it was undetermined if there would be further increases but she did leave the door open for that option in September.
"We are not in the domain of forward guidance but we are very strongly rooted in our determination to break the back of inflation," Lagarde said.
"There is the possibility of a hike next time. There is the possibility of a pause. It's a decisive maybe," she said, adding the bank was "open-minded".
