The European Central Bank has raised the minimum bid rate for its regular refinancing operations by a quarter of a percentage point to 3.25%.
Commercial bank rates in Eurozone member states including Ireland are expected to follow suit.
The Governing Council of the Bank made the decision at its meeting in Paris today.
The decision was widely expected, and financial analysts predict the bank will continue to tighten monetary conditions in the single currency area in the months to come, despite a current dip in inflation.
The bank has so far raised Eurozone-borrowing costs four times since December, each time by a quarter of a percentage point.
The ECB's rate-setting governing council comprises the central bank governors of all 12 Eurozone member states plus the bank's six-strong executive board.
