The European Central Bank has increased interest rates by 0.5% in an effort to tackle runaway inflation.
The move marks the end of an era of historically low interest rates which many believe may be the beginning of a recession. The Russian invasion of Ukraine and the subsequent fuel and energy crises are to blame for inflation which has sky rocketed to 9.1% in Ireland and 8.6% across the eurozone.
Increasing interest rates are a factor in what many believe is the onset of a recession. It comes as the latest survey of Dublin's economy shows the rate of increase is in decline which could result in a "slow down" in the second half of the year.
Read more: Dublin's economy faces 'slow down' as Eddie Hobbs might be proven right
The projections match the words of Finance Guru Eddie Hobbs who said a recession in early Autumn was "likely". He said: “We will likely be in recession by early Autumn, but definitely by Winter. All the signs are there.
“Right now, we are in a vortex, on the way to recession. We’re looking at the economy contracting, job losses, business closures. It’s a f**king firestorm.”
He added: “The next financial crisis is upon us, except this time, it’s in the guise of the runaway cost of living. The price will be paid by the working people getting poorer.
“We may as well start talking about it. At the moment, there is a complete suspension of reality going on.
“We’ll have to change all our budgetary positions - they’re redundant. Throw the political manifestos down the toilet.”
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