There are strong signals we will be getting a rate cut and historically that means that property prices will go up in response to a monetarist move. However, in Ireland this will not cause short term stabilization due to over supply. Today we will look at some of the ECB likelihoods as well as the response that property may have as the rates change.
Historically the boom in property in Ireland only truly gathered pace when rates were artificially low, that happened when the base rate was dropped to 2% for almost three years between 2003 until late 2005. The supply of money increases when you lower rates and the corresponding effect is that asset prices will rise as a result of it, however, there are other times when monetary policy acts as a life-ring more than as a rocket pack and that is the expected result of the Read More →