More rate rises on the way - For home owners, and particularly those who have bought at record prices, rising interest rates are a big issue for the household budget. Over the past few months there have been four rate rises. Some experts predict there could be four more. But all of that depends on inflation and economic growth in Europe. Over the past few days and this morning there have been new information released which is making some economists question how many more rate rises are in the pipeline.
Pat McArdle, chief economist with Ulster Bank, says that there has been a succession of weaker numbers from the US, the engine of the world economy, including data on growth, jobs, housing and leading indicators, which fell yesterday for the first time in several years. The economist says that in Europe, the economic scene is more mixed. Growth figures at the start of this week were stronger than expected, but these were followed by a number of poor figures including falling industrial production and weaker than expected inflation.
Mr McArdle says that while this means that some of the more pessimistic expectations might not be realised, the focus of the European Central Bank will remain on keeping inflation under control. He says we can look forward to more interest rate increases as inflation is still above its target of 2%. However, he says the expectations of a rate rise of up to one percentage point will depend on how the euro zone economy performs next year. He says that another half-point increase is certainly in the bag.
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Irish tech firm discovers free energy - An Irish technology firm has issued a challenge to the world's scientific community today. It says its invention smashes one of the basic laws of physics by producing free energy. The company, called Steorn, has placed an advertisement in the Economist seeking 12 top scientists to examine its invention based on magnetic fields and publish their results. It says the energy eliminates the need to recharge your mobile or refuel your car.
