BoI interest increase to cost €700m

BANK interest rates will be 1% higher by the end of 2007, Bank of Ireland CEO Brian Goggin warned yesterday.

If rates go to 3.5% between now and the end of 2007, €700 million will be added to the cost of servicing mortgage repayments annually, he said.

However, the bank argues that servicing this mounting debt burden is well within our capability.