Irish Examiner View: Interest rate rises will have consequences beyond macroeconomics

Increases to in the ECB interest rate have the potential to raise mortgage repayments significantly for those on tracker mortgages here.

Christine Lagarde, president of the European Central Bank, said the the ECB cannot reduce the price of energy through monetary policy. Picture: Michael Probst / AP

If it seems like only yesterday that news of an interest rate hike from the European Central Bank was being discussed, that’s an exaggeration — but not by much.

In early September, rates were hiked by 0.75%, and Wednesday brought confirmation of another increase by the same amount. Why? The ECB is clearly trying to rein in rising inflation in the eurozone, which was pegged at 10% in figures released last month.