Mortgage rates are set to rise as ECB signals increase

FEARS have intensified that the European Central Bank (ECB) will definitely hike interest rates next month, resulting in increased mortgage charges for many house owners.

Director of the Irish Mortgage Corporation Frank Conway said hopes have been dashed that the ECB may delay increasing interest rates as officials have now indicated the economic uncertainty caused by Japan’s earthquake may not deter them from raising interest rates next month.

ECB executive board member Gertrude Tumpel-Gugerell and Governing Council member Yves Mersch said this week that “strong vigilance” is necessary to keep a lid on inflation, a phrase the bank uses to signal a rate increase is imminent.