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Where do you see interest rates going for the next 3 years ?

  • 18-01-2010 01:09AM
    #1
    zod
    Closed Accounts Posts: 2,023 ✭✭✭


    According to the SBP it's up... and quickly.
    The move will set the tone for other lenders, which are preparing to raise their rates by as much as 1.5 per cent this year, putting pressure on borrowers.


    Can you see the EU putting up rates much over the next while ?


Comments

  • #2
    nesf
    Registered Users, Registered Users 2 Posts: 27,644 ✭✭✭✭nesf


    ECB Interest rates will go up over the next three years assuming that France/Germany/etc recover as expected. A 3% increase over the next 36 months would be a little on the high side but plausible if inflation kicks off on mainland Europe.

    That's just a guess though. :p

    Irish bank interest rates are very much dictated by money market rates though and they've been under a lot of pressure from this over the past year. I think this may improve for the larger banks but this acts essentially as a floor on the rates consumers on variable rate mortgages see and will cause increases over the short term especially for the smaller banks which are more exposed to inter-bank lending to fund their balance sheet.


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