Interest rate hike to hit homeowners
A report by KBC Asset Management forecasts interest rates could rise to as high as 6%, more than double what they are at present.
Chief economist Eoin Fahy said current interest rates in the EU are too low. He warned the continued economic growth in the eurozone could force the European Central Bank to raise rates in a bid to curb inflation. If interest rates double, the cost of financing the average €200,000 mortgage over 30 years would rise by nearly €400 per month.
