European Central Bank increases rates to tackle inflation
The European Central Bank manages the euro and frames and implements economic policy. It's main aim is to keep prices stable, thereby supporting economic growth and job creation.
So the bank is acting in accordance with its mandate in trying to manage inflation through raising interest rates.
We expect further rate increases in the short term to bring base rates to around 2%.
Mortgage holders are waiting to find out how their lender will react. We expect all rates to rise, with trackers rising by .75% in accordance with the tracker agreement.
Rapidly increasing interest rates will dampen investment and hinder growth. Coupled with shocking energy price increases there is no doubt that demand and confidence will be impacted.
Lets hope that the war in Ukraine stops soon.