'Psychological shock' for Irish mortgage holders as ECB tipped to hike rates

Christine Lagarde has refused to rule out raising rates if soaring energy prices continue to affect the eurozone

The potential for two interest rate increases this year will for the first time in a decade affect hundreds of thousands of Irish mortgage borrowers, including people on short-term fixed rates and trackers, senior broker Michael Dowling has said.

Last week, ECB president Christine Lagarde unexpectedly turned hawkish on inflation and, in a U-turn, refused to rule out hiking interest rates later this year should soaring prices of energy become embedded in the eurozone.