Interest rates expected to remain low as big returns are predicted for Irish property this year

January 6, 2014 The MyHome Newsdesk by The MyHome Newsdesk
Interest rates expected to remain low as big returns are predicted for Irish property this year

Financial analysts expect the Irish economy to continue to outperform the rest of the euro zone with property expected to deliver the best returns this year, according to a study.

The Market Sentiment survey of members of Chartered Financial Analysts (CFA) Ireland showed that 80 per cent expect both the Irish and global economies to grow this year, up from 50 per cent who predicted growth a year ago and a similar number in June’s survey.

CFA members also expect interest rates to remain low for the next few years, which would be a boost to homeowners if true. Almost three quarters of those surveyed said they expect euro zone inflation to remain below 2 per cent, while half said the main European Central Bank rate – the main rate used to calculate mortgage rates – will still be below 1 per cent in three years time.

“This indicates a strong view among CFA members that the euro zone economy is going to struggle over the next few years,” said Mr McCabe.

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“A majority also believe that Irish inflation will be between zero per cent and 2 per cent although there is a growing view that domestic inflation may rise above 2 per cent, a reflection on the strong positive sentiment on Ireland’s growth prospects,” he added.

CFA members believe Irish property will provide the best returns for investors this year, followed by equities and bonds.

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Uncategorized CFA Chartered Financial Analysts economy euro zone European Central Bank

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