Wednesday 13 December 2017

Interest rates set to remain stable

ECB president Mario Draghi Photo: Bloomberg
ECB president Mario Draghi Photo: Bloomberg

European Central Bank president Mario Draghi has signalled that he will not raise interest rates in the foreseeable future.

Taoiseach Leo Varadkar said this was good news for thousands of Irish mortgage holders and more generally very positive for the entire Irish economy. The ECB president briefed the EU leaders on the current economic position, which he said was positive.

"Mr Draghi indicated that there would be broad stability in that regard, that we shouldn't expect any sudden or dramatic changes in policy from the central bank, which is assuring, I think, very assuring for people who have mortgages in Ireland for example," the Taoiseach said.

"Were interest rates to go up suddenly or rapidly our economic picture might look very different because so many people are still carrying so much mortgage debt," Mr Varadkar added.

Diplomats said the ECB president told leaders the eurozone economy was growing and unemployment was falling. But inflation was not rising because wage increases had not yet picked up.

Irish Independent

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