ECB unveils rate hike plans with underlying inflation still 'alive and kicking' 

AIB responds by hiking variable and fixed rate mortgages  

Christine Lagarde at the ECB press conference in Frankfurt.

European Central Bank president Christine Lagarde announced an immediate increase of half a point in official interest rates, and said the European Central Bank plans to hike by a further half a point in March, as it doubles down in fighting inflation.               

Delivering a hard line message, the president told a media conference that the ECB "will stay the course" to tame underlying inflation pressures, which she said were still "alive and kicking".