ECB interest rates predicted to reach peak before next summer

However, financial markets continue to bet the ECB will "almost certainly" hike interest rates again when it meets on Thursday.

Analysts said investors remained somewhat nervous ahead of this week's ECB policy meeting.

The European Central Bank will have likely stopped hiking interest rates before next summer, but some Irish households will still see their mortgage rates rising to as much as 5%. 

Hopes had spread on Monday that the global central banks would start considering slowing interest rate rises after The Wall Street Journal reported on Friday that the US Federal Reserve was debating its pace of interest rate hikes.