ECB may hold off rate rise
Published 23/02/2010 | 05:00
THE European Central Bank may not raise rates this year.
That is the view of NCB Stockbrokers economist Brian Devine who maintains that despite the eurozone returning to growth, there is excess capacity.
Many economists expect the ECB to raise rates by the end of the year.
But Mr Devine said unemployment in the zone has yet to peak, while inflation has yet to fall to its lowest level.
The ECB will only raise rates when it thinks there is a threat of a return to inflation.
No rate rise this year would be good news for up to 200,000 people who have tracker rate mortgages.
These home loans only rise when the ECB rate rises.