ECB Hikes Interest Rates Again Amid Rising Energy Prices

The European Central Bank (ECB) has raised interest rates by another 0.25 percentage points to 2.5 per cent, putting more pressure on borrowers in Ireland.

This move comes as energy prices surge due to conflict in the Middle East, and policymakers signal they are ready to lift borrowing costs again if inflation does not improve.

The ECB's decision will likely impact variable rates offered by Irish banks in the coming months, with people coming off fixed rates also facing higher repayments.

According to the Central Statistics Office, mortgage interest repayments in Ireland have risen by 10 per cent over the last 12 months, and homeowners with tracker rates on large loans face significant annual increases in their repayments.

Trevor Grant, chairperson of Irish Mortgage Advisors, warned that State's 130,000 tracker mortgage holders will be among those feeling the squeeze, while Rachel McGovern of Brokers Ireland noted that people coming off fixed rates are also likely to be affected by the higher interest rate environment.