The European Central Bank (ECB) has today announced a seventh consecutive hike in interest rates.
European Trade Union Confederation General Secretary Esther Lynch said:
"There is a mismatch between what the ECB believes is going on and what is actually going on. The ECB has once again hit the wrong target.
"It is now widely accepted that inflation is being driven by excess profits and not by consumer spending. But raising interest rates does nothing to stop the profit-price spiral were in and instead piles further pressure on struggling working people.
“Most families need to borrow to buy essential items like a car to get to work, a fridge or furniture and the cost-of-living crisis has forced many to pay their energy bills and food shopping on credit. These will be the victims of today’s interest rates hike. The increase in mortgages places both homes and banks under stress.
“Meanwhile, the energy giants responsible for the latest increase in inflation are banking record profits. It’s time to stop hammering the victims of inflation and deal with its real cause through properly enforced windfall taxes and price cuts."