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INTEREST RATES TO RISE?

To compound the misery of many in Ireland, the European Central Bank is likely to increase interest rates next year, according to a report in The Sunday Tribune.

Quoting investment bank Morgan Stanley, the newspaper says key borrowing rates will start to go up next summer and will continue climbing thereafter – with a forecast rate of 1.25% in Q3 of 2011 and 1.5% by year-end.

At present, rates are at an all-time low of just 1%.

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