It is expected the European Central Bank will announce another hike in interest rates today.
“There’s been some leaks from ECB sources that suggest there could be a rate rise,” he said.“This will be the tenth in a row since July 2022 and I think that’s two or three rate hikes too far for the ECB.”Despite this, Mr Hughes predicted interest rates could soon be slashed quite substantially.
“The ECB always seem to overdo tightening cycles and they’ve always had to reverse course very fast,” he said. “I don’t think it’s going to be that different this time but they are facing an inflation that is greater than it has been.The Central Bank has forecast inflation in Ireland will drop to 3.4% in 2023 and fall to 2.5% in 2025.Main image: For sale signs. Picture by: Eamonn Farrell/Photocall Ireland
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