ECB Set to Hike Interest Rates as Inflation Hits Eurozone

The European Central Bank is widely expected to increase interest rates by a quarter of a percentage point, bringing its main rate to 2.5%.

This decision comes as inflation among countries using the euro has reached 3.3%, exceeding the ECB's target of 2%.

Higher oil prices are driving this inflation, with the price per barrel breaking the $100 threshold again this week due to the escalation of the Iran conflict.

The rate increase will automatically affect tracker mortgage customers, whose repayments will rise by €13 per month for every €100,000 borrowed.