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24/07/2009
'Worst To Come' As Republic's Mortgage Rate Rises
As speculation mounts that mortgage rates are about to go up across the board, a new survey has been published showing that the majority of Irish people believe the worst of the recession has yet to come.
The Eurobarometer survey said today that just 21% of respondents to the survey said they believed the economic crisis had already reached its peak.
In fact, things are so bad that almost one quarter of those questioned said they were not confident of having a job in two years' time.
The survey follows comments by the Governor of the Central Bank earlier this month when he warned that Ireland is "unlikely to experience an economic recovery until 2011 at the earliest".
John Hurley made his comments as he launched his final annual report as head of the bank on 14th July.
Today's announcement by the Irish Permanent TSB that it plans to increase mortgage interest rates for around 50,000 of its customers is therefore likely to be seen as a further set-back.
The bank said its standard variable rate will be going up by half a percentage point, adding almost €15 to the average monthly repayment - although the increase will not apply to people with tracker mortgages.
Permanent TSB says the move is necessary due to the high cost of funds, rising deposit rates and tight margins.
This is not being seen in isolation, as it is also thought that the other Irish banks will introduce similar increases.
(BMcC/JM)
The Eurobarometer survey said today that just 21% of respondents to the survey said they believed the economic crisis had already reached its peak.
In fact, things are so bad that almost one quarter of those questioned said they were not confident of having a job in two years' time.
The survey follows comments by the Governor of the Central Bank earlier this month when he warned that Ireland is "unlikely to experience an economic recovery until 2011 at the earliest".
John Hurley made his comments as he launched his final annual report as head of the bank on 14th July.
Today's announcement by the Irish Permanent TSB that it plans to increase mortgage interest rates for around 50,000 of its customers is therefore likely to be seen as a further set-back.
The bank said its standard variable rate will be going up by half a percentage point, adding almost €15 to the average monthly repayment - although the increase will not apply to people with tracker mortgages.
Permanent TSB says the move is necessary due to the high cost of funds, rising deposit rates and tight margins.
This is not being seen in isolation, as it is also thought that the other Irish banks will introduce similar increases.
(BMcC/JM)
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Northern Bank posts record annual results
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Honohan Calls On 'Banks To Re-Vamp'
The Irish Central Bank Governor, Patrick Honohan, has called on banks to re-vamp their methods of dealing with the growing problem of mortgage arrears. Speaking at the Oireachtas Finance Committee, he said some would undoubtedly resume paying their mortgages, but some just will not recover.
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Interest rate rise needed say mortgage lenders
The Council of Mortgage Lenders (CML) have said the continued rises in mortgage lending reinforced their view that a modest rise in interest rates sooner rather than later was desirable to avoid the possibility of sharper increases in the future. It is the first time mortgage lenders have called for a rise in UK interest rates in their history.
Interest rate rise needed say mortgage lenders
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Ulster Bank has announced that improving exports and more consumer spending has led to an improving economy, despite yesterday's downgrading of Ireland's credit rating. Ulster Bank said today it was revising its forecasts for Irish economic growth in 2010 upwards, predicts average annual GDP growth of 1%, up from -0.5% previously.
'Economy Improving' Says Bank, Despite Downgrade
Ulster Bank has announced that improving exports and more consumer spending has led to an improving economy, despite yesterday's downgrading of Ireland's credit rating. Ulster Bank said today it was revising its forecasts for Irish economic growth in 2010 upwards, predicts average annual GDP growth of 1%, up from -0.5% previously.
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Inflation rate fall may herald a further interest rate cut
Speculation is growing that a fall in the underlying inflation rate, down to 2.2 per cent, may give the Bank of England’s Monetary Policy Committee further room for manoeuvre to lower interest rates. Continued severe pressure on manufacturing industry has prompted further calls from industry leaders seeking another cut in the UK interest rate.
Inflation rate fall may herald a further interest rate cut
Speculation is growing that a fall in the underlying inflation rate, down to 2.2 per cent, may give the Bank of England’s Monetary Policy Committee further room for manoeuvre to lower interest rates. Continued severe pressure on manufacturing industry has prompted further calls from industry leaders seeking another cut in the UK interest rate.
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Northern Ireland WeatherThis Evening and Tonight:Showers, scattered in the evening, will clear by midnight leaving the night dry with clear spells. Perhaps a touch of ground frost. Cloud will spread east towards morning. Minimum temperature 2 °C.
