Interest rate increase threat
Published 17/02/2011 | 07:28
At any one time an economy faces myriad threats -- inflation, unemployment, soaring asset prices, low growth and poor productivity are just some of them.
But, increasingly, rising mortgage rates are becoming the most dangerous threat to our recovery. Ulster Bank predicts that interest rates could rise by between five and six times over the next two years, courtesy of the ECB.
This would hurt not just tracker mortgage holders, but also variable mortgage holders, already reeling from a succession of hikes, most notably from Irish Life & Permanent.