The Irish Congress of Trade Unions has criticised the decision of the European Central Bank to increase interest rates by 0.25%.
The first rate rise for five years brings the rate to 2.2%. The ICTU's Economic Advisor, Paul Sweeney, said the increase would hit young couples hard.
This is the first interest rate increase that borrowers have had to deal with for more than five years.
During that period the European Central Bank had cut interest rates on seven separate occasions to a historic low of just 2%, where it has stayed now for more than two and a half years.
However, the ECB made it clear on several occasions the 2% rate was an emergency rate aimed at staving off deflation in a stagnant EU economy and accommodating efforts to promote European Economic Recovery.
Two weeks ago the president of the European Central Bank Jean Claude Trichet clearly signalled that the emergency period was over and that the banks would raise European interest rates by 0.25% at its monetary council meeting today.
Higher inflation, an improvement in Europe's economic prospects and rapid increases in the amounts people are borrowing have all caused the ECB to act.
However, many economists and international, organisations including the OECD fear the ECB is acting too soon and could damage the European economy by raising rates now.
Today's 0.25% increases in interest rates will increases mortgage repayments by about €13 for every €100,000 borrowed over 20 years.
But the average new mortgage being approved in Ireland is higher than that at €230,000, and the repayments on that will rise by €32 per month.
