ECB raises interest rates by 0.5% in ongoing battle against inflation

The announcement marks the fifth interest rate hike in less than a year by the ECB and another 0.5% hike is expected in March, according to EU officials.

The hikes will effect around 300,000 tracker mortgage holders in Ireland as their payments will increase. Picture: Alex Kraus/Bloomberg

The European Central Bank (ECB) raised interest rates by a further 0.5% in an effort to drive down inflation.

The announcement on the ECB website marks the fifth interest rate hike in less than a year by the ECB and another half-point hike is expected in March, according to EU officials.