Low European interest rates for next two years

EUROPE is set to enjoy an ongoing period of low interest rates for the next two years.

In a major economic review of the European Union by 10 of its top research institutes, including the Economic and Social Research Institute, interested rates are projected to stand at 2.75% by end 2006.

They forecast an increase of just 0.25% later this year with a hike or hikes of 0.5% to follow next year.