The European Central Bank (ECB) has increased its key interest rates by 0.25% to 4.5%, the highest level since the euro was introduced in 1999. This is the tenth consecutive rate hike by the ECB since it started its anti-inflation campaign in July last year.

The decision was made at a meeting of ECB officials in Frankfurt, where inflation was the main concern. The ECB said inflation was still too high and expected to remain above its target of 2% for the next two years.

The rate increase will affect millions of borrowers across the eurozone, especially those with tracker mortgages that are linked to the ECB rate. In Ireland, where inflation rose to 6.3% in August, mortgage repayments have increased by €3,360 over the year for the average tracker customer.

The ECB’s move was not widely anticipated by analysts, who were divided on whether the central bank would act or wait for more economic data. The ECB said it would continue to monitor the situation closely and adjust its monetary policy accordingly.