Ulster Bank has reported in it’s “2006 Focus Report”, of a 0.25pc cut in UK interest rates.

Eurozone mortgages could see a rise of 0.50% in two rate increases while the US will see rates peaking at 5%.

Ulster Bank predicts at least one more rate cut early next year, with risks of further easing in the months beyond. The bank also expects a weaker dollar in the year ahead.

Ulster Bank predicts at least one more rate cut early in 2006, with risks of further easing in the months beyond.