The European Central Bank is to increase interest rates by 0.25% in July, which could result in mortgages costing around €40 more a month.
It will end a decade-long bond-buying scheme, introduced off the back of the financial crash where rates were below zero.
— European Central Bank (@ecb) June 9, 2022
It comes as the rate of inflation in Ireland increased by 7.8% to the end of May.
ECB president Christine Lagarde says they're looking at further increases in interest rates in September:
"The calibration of this rate increase will depend on the updated medium-term inflation outlook.
If the outlook persists or deteriorates a larger increment will be appropriate."