Skip to content
Central Banks

ECB Hikes Add Mortgage Agony to 20% Inflation at Euro Zone’s Eastern Edge

  • Baltics particularly exposed through high variable-rate loans
  • Their plight underscores a downside of euro membership

Already enduring the euro zone’s steepest inflation, the Baltic region is now finding it’s the most exposed part of the bloc to rising interest rates.

Estonia, Latvia and Lithuania have all seen consumer-price gains surge beyond 20%, with their officials at the European Central Bank pushing hard for aggressive rises in borrowing costs.