Austin Hughes of IIB Bank says: “We think the first rate cut should be delivered by next March and cuts of around 75 bps could be contemplated in the absence of an early improvement in the Eurozone growth outlook.”
If you were a betting man, you could have lost your shirt if you had followed Hughes’ past predictions. Therefore, it’s well to keep in mind that Jean-Claude Trichet doesn’t know what the benchmark rate will be in December 2009.
Austin has had a long career talking absolute shite , even to Finfacts. In April they published Austins latest interest rate analysis where he spouted rubbish about “emergency rate cuts” during 2008 , interest rates actually went up since finfacts.ie/irishfinancenews … 3171.shtml
Finfacts accused Austin of suffering from
“Halitosis Of The Intellect”
Who really cares what Comical has to say! Here is a so-called economist, second rate, with no real experience except in talking crap. Why does he suppose he should comment at all on affairs that are beyond his grasp.
As it happens, the six-month EUR interbank rate, today at 5.18 per cent, is at a 2008 high. The 12-month rate is at 5.34%. There is ***nothing ***on the horizon to indicate EUR rates are going to fall.
JC himself gave every indication last Thursday that you can forget rate cuts until inflation gets back down to close to 2% and he gave a projection of 2010 for inflation coming back to 2.25-5%. So adding 2+2 = 2010 before a likely rate cut. Simple maths does not appear to be a strong point among Ireland’s celebrity economists