RECOVERY WILL TAKE TIME - HURLEY - The European Central Bank yesterday revised down its forecast for the euro zone economy this year. Central Bank Governor John Hurley said the collapse of Lehman Brothers last September had led to an 'extraordinarily difficult environment' and global economies were witnessing shocks never experienced before.
Speaking to Emma McNamara in Frankfurt, he said 2009 would be very difficult. He said a recovery would be gradual and take time, but the benefits would be seen in 2010. Mr Hurley said the bank had to be cautious in forecasting, however.
The Governor said there had been some signs of a bottoming out from recent 'soft' data - such as consumer and business sentiment surveys.
On interest rates, Mr Hurley said the ECB had not taken a decision that the current 1% was the lowest it could go.
Mr Hurley also said a lot of work had gone into the National Asset Management Agency, which will take loans off banks' balance sheets. He said he expected some further falls in house prices in 2009, but he would not call the market in the future.
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NEWS AND CURRENCIES - Bank of Ireland's annual report shows that former chief executive Brian Goggin, who resigned in February, was paid a total of just over €3m in the year to the end of March.
Mr Goggin's salary was lower at €1.17m, but he also received a €1.46m payment. This was because under his contract, he was entitled to 12 months' notice. As he left the bank in March, he received 12 months' pay in lieu of this. New chief executive Riche Boucher received just over €1m in the year.
The euro is worth $1.42 and 88.2p sterling.
