ECB Set to Hike Interest Rates Amid Rising Oil Prices

The European Central Bank (ECB) is expected to increase interest rates by a quarter of a percentage point, bringing its main rate to 2.5%. This move comes in response to rising inflation, mainly driven by higher oil prices.

Inflation among countries using the euro is 3.3%, which is well above the ECB's target of 2%. As a result, the bank is likely to increase interest rates for the second time this year.

The rate hike will have an impact on tracker mortgage customers, whose repayments will rise by €13 per month for every €100,000 borrowed. This increase will also put upward pressure on other mortgage rates over time.