No interest rate hikes expected until July

INTEREST rates may not rise as quickly as has been expected, according to Bank of Ireland’s chief economist.

It is now expected that European Central Bank (ECB) interest rates could stand at 2% by the end of next year rather than a previously anticipated 2.5%.

A rise to 2% from the current 1.25% rate would mean an extra €135 a month payment for those with €300,000 mortgages.