Irish mortgage arrears will 'inevitably' rise as ECB pledges more interest rate hikes

Core price pressures moderated by less, meaning there is probably still at least one more hike to come to ensure the 2% inflation target is reached

European Central Bank president Christine Lagarde said it was not yet apparent core inflation has peaked in the eurozone, pledging further increases in borrowing costs.

A veteran of the Irish mortgage business has warned home loan arrears will "inevitably" rise in the coming months as the European Central Bank doubles down on its hawkish stance over interest rates. 

Michael Dowling, who has held senior positions in the industry for over 20 years, said Irish banks have yet to pass onto their mortgage borrowers the full extent of increases in official rates since the European Central Bank started out on its cycle of rate hikes last July.