COST OF LIVIING CRISIS: FEARS EUR MORTGAGE WILL RISE..

Central Bank warns risks to economy grow

- CILLIAN SHERLOCK

INTEREST rate rises from the European Central Bank are likely, it was warned yesterday.

Despite climbing seven times since last July, the ECB is expected to announce a further increase next week with an additional spike expected later this summer.

The Central Bank also warned the risks to the Irish financial system have grown as inflation threatens the global economy.

Its financial stability review, which was published yesterday, also outlines the resilience of the economy to adverse shocks and policy actions to ensure stability.

The financial services regulator determined Irish banking has also proved robust against recent turbulence and has the capacity to absorb potential future shocks.

However, pockets of the nonbank financial sector could see existing vulnerabilities amplified.

Seven interest rate rises since last summer with at least two more this year

2% target rate for inflation remains some way off at the moment