European Central Bank Increased Rates By 0.75%

2% increase so far in 2022

The European Central Bank has increased its rates by a further 0.75%.

The ECB notes it's job is to reduce annual inflation to 2% - it currently stands at almost 11%.

The rate increase means the cost of borrowing for tracker mortgage customers will increase.

The Bank of Ireland has already confirmed this will come into effect for tracker-mortgage customers from 16th November.

Banks have yet to decide whether to pass it on to variable and fixed rate customers.

President of the ECB, Christine Lagrade, says there are a number of factors driving inflation:

We’ve just taken our latest monetary policy decisions, determining what’s needed to achieve stable prices in the euro area.

Tune in to #TheECBPodcast to hear President Christine @Lagarde present the decisions in our press conferencehttps://t.co/tMkt8cf4tC

— European Central Bank (@ecb) October 27, 2022