The announcement by the European Central Bank of yet another increase in interest rates represents a further tightening of the screw for many hardworking families.

This is bad news for those buying their own homes or those who aspire to do so. This is the sixth hike since December 2005 and it means that monthly repayments on a typical mortgage of around €300,000 will have increased by close to €300 in the same period.

The cumulative effect of these increases will have been to significantly diminish whatever benefits most families might have expected to enjoy as a result of the budget decision to increase the ceiling on mortgage interest relief.

With interest rates at a five year one would have expected the Minister for Finance to have used yesterday’s budget to provide some more assistance for hard-pressed families.