Irish mortgage interest rates to rise in spite of ECB inaction on inflation.

The linked article from the Irish Times, this morning, warns mortgage borrowers of a likely rise of one per cent today to reach 5.1% on one variable rate.

Tracker rates, are still thought to be low risk according to a Government consumer body the same article concludes. A few moments thought should convince all but the most reckless, both in Ireland and the UK, that not switching early, could to the contrary, prove disastrous.

Delaying an increase in interest rates to tackle obvious primary and now secondary inflation (accepted as present in the Euro Zone by Mr Trichet of the ECB in his press conference yesterday), which is the present policy stance of both the Bank of England and the ECB, must result in higher than necessary increases in rates the future which will also inevitably last for longer. A table showing such a case, UK interest rates (then also roughly applicable for Ireland) between 1979 and 1997 is linked here.  Geoffrey Howe's 1981Budget, necessary after years of Labour Party corruption and misgovernance, "did reduce inflation from 11.9% in Spring 1981 to 3.8% in February 1983. Long-term interest rates also somewhat declined from 14% in 1981 to 10% in 1983."

(Iceland the best case study for Ireland, should the incoming Irish government succeed in ridding itself of economic slavery to the Euro Zone Group, succeeded last year following the default of its banks, in getting interest rates down from 13% to 7%, see here! This year the Icelandic economy is growing at 3% a distant if not non-existent dream for Ireland whilst still stuck within the Euro.)

Unlike in  Ireland, the UK has the freedom of its own currency, which should allow it to adopt policies that will rid it of its servitude and economic enslavement to the EU, unhappily it only has a political class addicted to the subsidies and backhanders of that increasingly foul and mis-directed organisation, and in the words of Ayn Rand (delivered via the fictitious John Galt) will thus continue to sacrifice independence to unity, justice to mercy, reason to faith, wealth to need, self-esteem to self-denial and happiness to duty.