‘ECB to raise interest rates soon’

EUROPEAN interest rates are set to rise sooner rather than later, according to leading Irish economists.

IIB Bank chief economist Austin Hughes said yesterday there is a greater chance of a December ECB rate hike than the markets currently envisage.

He said stronger consumer spending in the US will become established over the critical Thanksgiving/Christmas period and this will cause an eventual rebound in term interest rates in the US and elsewhere.