BoI forecasts ECB rate of 3.75% in 2007
Bank if Ireland's chief economist, Dr Dan McLaughlin, has announced that in light of bank lending in the euozone, he is changing his forecast for ECB rates and expects the repo rate to rise from 3.5% in December to 3.75% in March 2007.
Dr Dan McLaughlin said: “It would now come as a major shock to the financial markets if the December 7th meeting in Frankfurt did not deliver another quarter point increase in the repo rate, as that was clearly signalled at the last policy meeting in early November.
