Ecb Rate Rise Day

[BandWagon]

It's almost a certainty that the ECB will lift rates a quarter point to 3.5% today.

Interest rates in the Eurozone were pegged at 2% from mid 2003 to late 2005, which most of us know continued to fuel an already over-heated Irish economy.

(Inflation was about 6%, so real interest rates were -4%, complete madness. It just made sense to borrow and spend.)

But after the last year's rises many homeowners will see interest repayments up 75%, that's got to hurt.

Those house prices that are already falling at £3k a month have a long way to go.

http://www.timesonline.co.uk/article/0,,2091-2460194,00.html

I'm just glad the madness is coming to an end, their cancer was spreading to other parts of the world.

Edited December 7, 2006 by BandWagon

[lulu]

It's almost a certainty that the ECB will lift rates a quarter point to 3.5% today.

Interest rates in the Eurozone were pegged at 2% from mid 2003 to late 2005, which most of us know continued to fuel an already over-heated Irish economy.

(Inflation was about 6%, so real interest rates were -4%, complete madness. It just made sense to borrow and spend.)

But after the last year's rises many homeowners will see interest repayments up 75%, that's got to hurt.

Those house prices that are already falling at £3k a month have a long way to go.

http://www.timesonline.co.uk/article/0,,2091-2460194,00.html

I'm just glad the madness is coming to an end, their cancer was spreading to other parts of the world.

But its different this time.

[zag2me]

But its different this time.

Yep, 3.5% still seems amazingly low

[OurDayWillCome]

Yep, 3.5% still seems amazingly low

True – that's why we haven't seen the last of the rises

[Flash]

Yep, 3.5% still seems amazingly low

It isn't if you were mortgaged to the hilt when rates were 2% just one year ago.

Do the math. That's why Dublin prices are falling.

[Guest]

It has become sorely apparent to me that some people are incapable of doing the maths.

[Levy process]

Yep, 3.5% still seems amazingly low

"Seems".....

Don't include any calculations or logic in there. Just go on "seems". That's bound to be a sound basis for a massive financial decision.