Saturday 10 December 2016

Rate cut was never off table -- it was simply a matter of time

Published 23/07/2011 | 05:00

The reduction in the interest rate on Ireland's bailout loans is a major victory for Enda Kenny as Taoiseach, but even more it's a victory for common sense and financial prudence.

  • Go To

Agreed in the frenetic days of November when Ireland's economy looked like it could collapse under the weight of its own debts, the interest rate levied -- mainly at the insistence of Germany -- was an attempt to punish countries for their own profligacy.

The rate of 5.8pc was not based on grand financial principles, but was based instead on a debatable idea that governments would change their long-term behaviour if rescue assistance was made extremely expensive.

Please sign in or register with Independent.ie for free access to Opinions.

Sign In

Read More

Don't Miss

Editor's Choice