The European Central Bank (ECB) increased its main refinancing rates to 4.5% on Thursday, making it the 10th straight increase in the cost of borrowing since the bank started raising rates in July of last year.
Experts were split ahead of the decision, with many suggesting the central bank might be better to wait, as inflation is already well below the highs of earlier this year.
The move of another 0.25% higher is bad news for borrowers. Mortgage holders will feel the pinch if they are on floating rates.
It is also bad news for farmers who have borrowed in recent years for investment or any who find themselves increasing borrowing to meet cashflow demands at a time when incomes are under pressure in many sectors.
There is one silver lining in Thursday’s announcement - there is a strong hint that this move higher in rates could be the last one for some time. There is no sign whatsoever though that an interest rate cut is on the horizon.