Irish homeowners on variable and tracker rates will soon be hit with an increase in their monthly mortgage repayments.
The European Central Bank confirmed today that interest rates will be raised by 0.25% in July, marking the first time the bank has raised rates in eleven years.
The bank has predicted inflation 6.8% in 2022, 3.5% in 2023 and 2.1% in 2024..
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The end of the ECB's bond market stimulus, the Asset Purchase Programme, was also announced today.
Speaking on Newstalk, economist Jim Power said further increases could be on the horizon.
He said: "I think we'll see another quarter of one per cent increase in September, and it's not going to end there. I would expect over the next 12 months in total ECB interest rates are likely to increase by around 2 per cent."
These new rates will hit around 450,000 people who are on variable or tracker mortgages.
It also means future fixed rates will become more expensive.
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