Ireland’s cost of borrowing hits record high of 7.4%

IRELAND’S cost of borrowing hit new highs yesterday as the cost of bonds passed 7.42%.

This is worrying news for the economy, but as the Government does not have to go back to the markets until January to raise funds, fears about our ability to repay our debts may have eased by then.

Economist David McWilliams said on Today FM’s The Last Word programme yesterday that the current drift in the cost of bonds would rule out our going to the markets in January to raise money to fund next year’s budget.