ECB sparks fears of further interest rate hikes as 300,000 notified of tracker payment rise

Eurozone inflation outlook fails to improve since July hike, prompting suggestion of large interest rate increase next month

The ECB increased interest rates for the first time in 11 years at its July meeting, which meant Irish banks had to notify tracker mortgage borrowers that their mortgages were automatically rising. 

A European Central Bank official has reignited fears of further hefty increases in interest rates, on the same day that many of the 300,000 Irish households on tracker mortgages got their first notification about the extra money they will have to pay after interest rates were hiked only last month.                   

The ECB increased interest rates for the first time in 11 years at its July meeting, which meant that Irish banks had to notify their tracker mortgage borrowers within four weeks that their mortgages were automatically rising in tandem with the half-point raise agreed by the central bank.