Slow growth signs will not put stop to interest rate increases

SIGNS of sluggish growth in the eurozone will not be enough to prevent interest rates rising towards the end of the year, homeowners were warned yesterday.

Figures released yesterday by the European Commission and Eurostat, the EU statistics agency, suggested the eurozone’s economic recovery was still sluggish.

However, Ulster Bank economist Niall Dunne said the figures should be seen in the context of the pick-up in inflation and that the European Central Bank’s (ECB) policy of keeping inflation under control would outweigh economic growth concerns. Mr Dunne predicted the ECB would raise rates by 0.25% between November and March.