The country’s chronic housing shortage is set to persist and push property prices even higher while, at the same time, the Central Bank’s mortgage rules continue to restrict lending to ‘abnormally low’ levels despite a pick-up in April.
Greece’s government bonds advanced, pushing the cost of borrowing, or the yield, for the Greek state for 10 years below 7% for the first time since November, after its creditors agreed to release aid and committed to ease the nation’s debt.
Irish banks have made progress, but the costs of servicing their high-level of non-performing loans will likely not fall as quickly as they hope, despite the strong recovery, outgoing Central Bank governor Patrick Honohan said yesterday.
Most eurozone bond yields fell yesterday, including the cost of borrowing for the Irish Government, after ECB policy makers hinted at their readiness to modify or expand their unprecedented stimulus programme should market turbulence warrant further action.
A Bank of England policymaker said UK interest rates need to rise “relatively soon” as wages pick up, adding to signs that support is gradually building for the first increase in British borrowing costs since before the financial crisis.