EMU keeps interest rates low

INTEREST rates from 1.7% to 7.3% would apply in the euro zone if European Monetary Union did not exist, the Dublin Economic Workshop in Kenmare was told last evening.

NUI Maynooth economist Jim O’Leary said Ireland’s rate would currently be 4.7%, nearly two-and-a-half times the current European Central Bank (ECB) rate of 2%.

Mr O’Leary said using Taylor Rule estimates for interest rates, Ireland would have had double-digit interest rates from 2000-2002.