ECB increases interest rates by 0.5 per cent - the first rise in 11 years

The European Central Bank has increased interest rates by 0.5 per cent - the first rise in 11 years.

It will definitely be passed on to nearly 300,000 people in Ireland on tracker mortgages.

It could also be passed on to 200,000 Irish customers on variable mortgages.

The ECB made the announcement today, in a bid to tackle rapidly rising inflation.

President of the European Central Bank, Christine Lagarde, says the Ukraine conflict has slowed economic growth: