Eurozone growth could lead to 2.75% interest rates by end of 2005

INTEREST rates could hit 2.75% by the end of next year, according to Bank of Ireland chief economist Dan McLaughlin.

Writing in the latest BOI Global Markets bulletin Dr McLaughlin said eurozone growth will average 2.3% in 2005.

This will lead to an ECB interest rate rise in the second quarter and a rate of 2.75% by year end.