State faces higher borrowing costs but major infrastructure projects unlikely to be derailed

Financial markets have bet that ECB will likely be forced to continue to hike rates throughout 2023  

ECB president Christine Lagarde spelled out plans for a series of hikes starting in July.

The interest costs for the State to borrow money spiked higher this week, but experts say that the sovereign borrowing costs should not at this stage dent the ambitions of the Government to finance its big spending plans on infrastructure projects in the coming years. 

Sovereign yields or interest rates rose for all eurozone governments as the European Central Bank signalled a lift-off in its official rates as it fights to check consumer prices that have soared to levels not seen for many decades.