Photograph: Sasko Lazarov/rollingnews.ieCentral Bank governor Gabriel Makhlouf says he expects the European Central Bank (ECB) to make two further interest rate hikes in the coming months and for rates to remain elevated for longer than markets anticipate. Commercial real estate was particularly vulnerable to rising interest rates because of stretched valuations and structural challenges relating to remote working, the regulator said. The review also noted that profits in the banking sector here continue to grow due to higher interest rates. Retail banks have been slow to increase deposit rates in response to ECB rate changes and have profited from low-paying current accounts. The pass-through of ECB rate hikes to customers from nonbank lenders has been more aggressive than conventional lenders.

Source: The Irish Times June 07, 2023 19:03 UTC