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Rising Debt Could Push Mortgage Rate To 6pc, Warns

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Rising debt could push mortgage rate to 6pc, warns bank

BORROWERS need to be aware that mortgage rates could conceivably reach 6pc and that there are serious risk to the global economy, the Central Bank has warned.

In its annual report on the health of the financial system, the Central Bank says the main risk remains the "high and growing level of indebtedness".

Although the banking system has a healthy cushion of profits and capital, the rate of borrowing has accelerated and the increased debt burden will have to be paid for.

"We have to consider that the vulnerability of the economy is increasing," Bank Governor John Hurley said. "The level of debt will approach 160pc of economic output (GDP) by the end of the year. Borrowers and lenders need to make decisions on the basis of changing circumstances."

from the Irish Independent

Edited by gruffydd

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Rising debt could push mortgage rate to 6pc, warns bank

BORROWERS need to be aware that mortgage rates could conceivably reach 6pc and that there are serious risk to the global economy, the Central Bank has warned.

In its annual report on the health of the financial system, the Central Bank says the main risk remains the "high and growing level of indebtedness".

Although the banking system has a healthy cushion of profits and capital, the rate of borrowing has accelerated and the increased debt burden will have to be paid for.

"We have to consider that the vulnerability of the economy is increasing," Bank Governor John Hurley said. "The level of debt will approach 160pc of economic output (GDP) by the end of the year. Borrowers and lenders need to make decisions on the basis of changing circumstances."

from the Irish Independent

...but the irish are in euroland,which to be frank ist kaputt.The ECB won't be raising anytime soon,even thogh they are sabre-rattling a bit.....if they do then german and french manufacturing is at risk,and that is the mainstay of EU's meagre growth rate at the moment.

...and if WE raise rates then consumer spending in france,spain and all of our second-home place in the sun hotspots will be shafted,and that's the locals too!

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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