ECB Set to Hike Rates as Eurozone Inflation Hits 3.3%

The European Central Bank (ECB) is expected to raise interest rates next week in response to inflation in the eurozone reaching 3.3% in August, up from 2.9% in July.

The jump in inflation has been driven largely by higher oil and gas prices, with markets pricing in a 25 basis point increase at the ECB's governing body meeting on September 10.

Experts warn that another rate rise could see new fixed rates and variable rates increasing for mainstream lenders, affecting thousands of people with tracker mortgages.

Mortgage broker firm Finance Solutions advises homeowners to examine all options available to them ahead of the rate rise move, with switching mortgage can be one of the most effective ways to reduce monthly repayments and avail of better interest rates.