Interest rate hike ‘to hit Irish borrowers’ next year
Expectations for a rate hike have gathered pace but its timing will likely depend on the outcome of elections in France, Germany and Italy. There is, however, little doubt German central bankers will up pressure on some sort of tightening of rates, said Alan McQuaid, chief economist at Merrion in its latest outlook.
The Irish banks are in much better shape but Mr McQuaid said even a quarter-point rate hike here could have an outsized effect on indebted Irish households and firms which are still struggling with the fallout from the financial crash. “There are still a lot of people paying back debt and a lot of people who are in negative equity,” he said.
