ECB interest rates - Stamp duty uncertainty is a big concern

THE European Central Bank (ECB) raised its interest rate by 0.25% yesterday for the eighth time in the past 18 months.

This brings the key interest rate to 4%, which is the highest level in almost six years.

The increase was signalled at the ECB meeting in Dublin last month, so it was no surprise. Jean-Claude Trichet, president of the ECB, explained that the bank’s policy is to ensure stable inflation in order to promote sustained economic growth, and thus job creation. The banks and building societies will pass on the rate increase to borrowers and savers.