NDP GROWTH FORECAST 'CONSERVATIVE' - Sterling is at a 14-year high against the dollar. Yesterday it went above $1.99 cents.
Bank of Ireland's chief economist Dr Dan McLaughlin said the UK markets were expecting another half-point rise in interest rates to 5.75% later this year, which was attracting money into sterling. But he said he expected sterling to weaken in the next couple of months as markets were being too pessimistic about British rates. The economist said the euro/sterling rate had been remarkably stable over the past few years.
Dr McLaughlin said the Irish economy grew by around 6.5% last year, and he is predicting 6% growth in 2007, led by consumer spending. He said the assumptions of 4% to 4.5% laid out in the National Development Plan were very conservative, as official estimates had significantly underestimated growth and tax revenues.
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NEWS IN BRIEF AND MARKETS - British bank Northern Rock says the amount of money held by its Irish savers jumped by 48% last year to just over £1.5 billion. The bank offers savings products over the telephone and internet from its Irish office.
The euro is worth $1.3016 and just under 65.90p sterling.
