Home > Economy > Brexit impact on the Irish economy is likely to be "negative and material"

Brexit impact on the Irish economy is likely to be "negative and material"

Written by Robert McHugh, on 14th Jun 2017. Posted in Economy

article headline

Irish households remain relatively highly indebted and vulnerable to potential interest rate hikes despite growing employment supporting a fall in personal debt, the central bank said on Wednesday.

Ireland has had the fastest-growing economy in Europe for the past three years but its debt-to-disposable income ratio was still among the highest in Europe at 142% at the end of last year, following the financial crisis of a decade ago.

With almost half of all mortgage debt on products that track the European Central Bank's low interest rate and a further 41% on variable interest rates, the central bank said Irish borrowers were susceptible to any increases in ECB policy rates.

"While household debt has been declining, some households remain highly indebted, leaving them vulnerable to a rise in interest rates," the central bank said in its biannual macro-financial review.

"Debt is not distributed evenly across households. Those in the 30-44 age category have high debt-to-income ratios relative to other age cohorts and by international comparison." (Reuters)

Source: www.businessworld.ie

More articles from Economy

image Description

Euro plunges as risk aversion, Italy concerns weigh

Read more
image Description

Ireland hikes GDP forecasts as labor market fuels further growth

Read more
image Description

Irish central bank warns firms to brace for major Brexit disruption

Read more
image Description

Competitive focus needed as economy nears full throttle warns Ibec

Read more
image Description

Global mergers and acquisitions reach record high in Q1

Read more