Bruton: Central bankers’ move will worsen crisis

THE move by Europe’s central bank to raise interest rates yet again will only make the credit crunch worse, Fine Gael warned last night.

Finance spokesman Richard Bruton said the European Central Bank decision to put another 0.25% on mortgages would only add to the economic woes of Ireland and the rest of the eurozone.

“With growth forecasts falling all over the eurozone, there is a danger that this further rise in interest rates will just reinforce the economic slowdown and the credit crunch. It will limit the ability of borrowers to work their way out of trouble and send banks scurrying to pull in credit lines,” he said.