Interest rate hike unlikely until mid-2005

MORTGAGE holders can look forward to lower interest rates for up to another year, according to new Bank of Ireland research.

In its latest outlook on the Irish housing market, BoI says, given the continued poor performance of the European economy, it was not expecting the European Central Bank (ECB) to up rates until late next year.

BoI chief economist Dan McLoughlin said the markets had been anticipating an interest rate hike this year but “the ECB had clearly moved to a more hawkish stance” and he does not expect a rise for some time.