‘Soft landing for house market’

WITH Irish house prices expected to grow by 6.7% this year, the governor of the Irish Central Bank believes the housing market will face a soft landing.

Central Bank Governor, John Hurley, yesterday identified the biggest risk to the Irish economy as the disorderly unwinding of global imbalances, especially the twin deficits in the US, the current and fiscal account deficits.

“If this were to occur, we could experience a rapid decline in the US dollar and a sharp euro appreciation, which would impinge on our competitiveness. The other main external risks are developments in energy markets and the uncertain geopolitical situation,” he told the Irish Examiner sponsored Cork Chamber of Commerce Business Breakfast yesterday.