Rates to hit 4pc in summer as growth picks up

INTEREST rates are expected to rise to 4pc this summer in the wake of fresh evidence that growth has picked up across the eurozone economy.

At least five banks, including Morgan Stanley, Deutsche Bank, Bank of America, Barclays and UBS, have told clients over the past few days that they are raising their growth forecasts for the eurozone, meaning there is a strong case for the ECB pushing up rates to 4pc this summer.

“The case for the ECB pushing up rates to 4pc this summer is getting stronger,” said Lehman Brothers, a big bond dealer. However, it would take higher inflation for Lehman to raise its forecast that ECB rates will hit only 3.75pc, a quarter percentage point up from now.

More at:
unison.ie/irish_independent/ … e_id=15279

Make that 4.5%…

Rates shock with four rises warning
Strong growth in eurozone could see interest rates at 4.5pc
BORROWERS could get another hammering this year - with four more rises in interest rates to 4.5pc - one leading European bank warned yesterday.

More at:
unison.ie/irish_independent/ … e_id=15280

After that, I’d say we will be done and dusted regarding any future rises. :blush:

Done and dusted at *

*Insert current Rate here

I wonder what comical would have to say about our incredible inflation rate. Come to think of it, has anyone seen him or heard him in the recent past. Has he gone to ground? Come back Austin, we need a laugh when you see worrying articles like the below


Quoted on RTE today…

Hmmm. I thought I read services had gone up 9%!!! And of course, energy and all that… If that’s not generalised… :unamused:

Looks like he still thinks the ECB won’t raise their rates.

he was on newstalk today urging people not to get spooked by rising inflation :laughing: :laughing: :laughing: :laughing:

he does have a point, if you strip out all the items that are rising in price then the underlying inflationary picture is relatively benign. the man is an economic guru.

:smiley: :smiley: :smiley: :smiley: :smiley: :smiley: :smiley: :smiley: :smiley:

What I find more worrying is that if you focus on the items that are actually falling we seem to be in a dangerous deflationary spiral, we should cut rates at once, also it must be pointed out in this scenario even any reported nominal house price drops are still less than deflation so HPI continues in real terms at least.

You know what NEWSTALK is one of the most PROPERTY dependent outfits in the media and it’s their audience who are the are most likely core FTB & younger groups. The ones the market is so dependent on.

The most PROPERTY dependent outfits in the media and it’s their audience who are their most sensitive, a core of FTBers & the generally younger more impressionable type.

The very people the Irish market is so dependent on.

Its the naked targeting of these “ABC123s” with property advert after foreign property advert ad nauseum!

Then the MC of the whole sham, Comical Austin is rolled out to oil wheels of destruction with endless hope, smoke & a few mirrors to bang (seems to work on radio)!

Oh it all makes sense now.