The European Central Bank (ECB) has raised its key interest rate from 2.25 to 2.5 percent. Officials said the decision was prompted by inflationary pressure caused by the conflict in the Middle East. Prices are being driven up primarily by the oil price shock resulting from the war in Iran. Commentators see little hope of the situation improving with this measure. There is little hope of interest rates and energy prices coming down for now, The Irish Times fears: “There is no sign of any easing in the damaging economic uncertainty caused by geopolitical developments. Mortgage borrowers will hope that interest rate increases will be modest – particularly new borrowers or those coming off fixed rates, who are most exposed.
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