Average State interest rate falls to record low of 1.5%

Ireland is benefitting from ongoing support from the European Central Bank.

The average interest rate on Ireland’s debt will fall to a record low of 1.5pc this year as the interest bill drops below €3.5bn.

The State's debt office the National Treasury Management Agency (NTMA​) published its mid-year business update today and said interest repayments are expected to remain below €4bn per year until 2025 at the earliest. This is despite a surge in borrowings to finance the response and range of supports since the onset of the Covid-19 pandemic.