ECB Rate Increases to End?
According to a recent EU Report, there was a distinctive slowdown in the growth of the Euro Zone GDP in the last quarter. This fact has prompted many economists in the EU to question the likelihood of the proposed ECB Base Rate Increase going ahead in September. According to the Irish Times today, Dan McLaughlin, Chief Economist of the Bank of Ireland feels that the likelihood of a rate increase in September has fallen from a 95% probability to about 65%.
Although many feel that it might be too optimistic to expect that the recent report will actually prevent the September rate increase, it is widely agreed that if the slowdown continues it is very likely to negate further base rate increases beyond September. This will be welcome news for mortgage holders and first time buyers as there have been eight increases of 0.25% since December 2005, with the ECB base rate increasing from 2% to 4%.
It looks as though the issue of affordability for Irish househunters may be taking a turn for the better at last!
Although many feel that it might be too optimistic to expect that the recent report will actually prevent the September rate increase, it is widely agreed that if the slowdown continues it is very likely to negate further base rate increases beyond September. This will be welcome news for mortgage holders and first time buyers as there have been eight increases of 0.25% since December 2005, with the ECB base rate increasing from 2% to 4%.
It looks as though the issue of affordability for Irish househunters may be taking a turn for the better at last!
