Irish investors move €2.5bn from cash to beat inflation

Davy sees surge in activity of moving funds into highly liquid investments

Davy said the movement into short-term investments has exploded from negligible levels of between €10 million and €30 million a month to an average of €200 million a month since March last year.

Irish investors have shifted more than €2.5 billion out of cash deposits into short-term investments over the last year in response to rising inflation and higher interest rates, new figures from Davy stockbrokers show.

In the latest sign of Ireland’s booming wealth management industry, Davy said investors were responding to the changing economic environment, where the value of cash deposits is technically eroded by inflation.

The stockbroker said there has been a surge in activity ...