Interest rates - US rate hike will trigger Euro rise

NOBODY likes to see interest rates going up because it raises the cost of borrowing across all fronts, including home loans.

With US rates now rising, the concern for Ireland is that when Euro rates begin to follow it will inevitably put severe strain on those living on the margins and struggling with serious personal and home loan debts.

That the European Central Bank has held rates down is no surprise given the weak outlook for the Euro economy where unemployment is stubbornly stuck at nearly 10%. This contrasts with the hike in US rates in response to a strong recovery with gross domestic product expected to top 4% this year.