Interest rate hike hits market hard

The ISEQ index went into free fall again as the European Central Bank announced it is to increase interest rates by 0.25% despite fears that this could be higher.

The Irish exchange dropped 99.87 points to 7,189.42.

The financials were worst hit with the sector falling 322.09 points. AIB declined by 69c to €17.51 with 4.5 million shares traded. Bank of Ireland confirmed it is considering a sale and leaseback of 40 of its 254 branches. Shares finished 20c down at €13.50. Anglo-Irish shed 30c to €11.10, with Irish Life & Permanent losing 85c to €17.40.