More interest rate hikes in prospect? Almost certainly

After 6 years of interest rates sitting at rock bottom, it came as a bit of a jolt when the European Central Bank started raising rates last summer.

But it has lost no time in playing catchup - the July increase was followed with two successive 0.75 point hikes and another half point increase in December.If it raises rates too aggressively, it could tip the euro zone into recession. "We need to raise rates more," ECB chief economist Philip Lane told the Financial Times quite explicitly in recent weeks.

"The question is how do you get from mid-threes at the end of 2023 to the 2% target in a timely manner," Philip Lane said in the FT interview, leaving the door open to further rate hikes later in the year or even into next year.Tracker mortgage holders get the full brunt of each rate hike.Tracker mortgages are named as they track the ECB rate as it moves up or down, but with a margin attached, usually of around a percent or more.

But once a tracker is renounced, it's likely gone forever. A decision on forgoing a tracker should be taken with the advice of a broker or financial adviser.While lenders across the eurozone responded promptly to each of the rate hikes, the banks here appeared to adopt a 'wait and see' approach.

The banks going to have the biggest property portfolio in the coming months how the he’ll do they think people going to keep paying this wow

Usually when the mortgage interest rates increase, the savings deposit rates also increase. Nope, not in Ireland, mortgages are over 3% but we can consider ourselves lucky if we can get a mere 0.4% on a savings account. 🤡

More transfer of wealth and forcing people out of their homes. You will own nothing and be happy, the great reset continues from the plandemic.

Will almost inevitably put people out of their homes. Will the government step in with AIBIreland and make it stop? Massive profits last year.

'Insanity is doing the same thing over and over and expecting different results.' Albert Einstein

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Source: IrishTimes - 🏆 3. / 98 Read more »