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ECB interest rate cut needs to be passed on to mortgage holders immediately – Ó Snodaigh

8 October, 2008


Sinn Féin Housing Spokesperson Aengus Ó Snodaigh TD has welcomed the cut in the European Central Bank interest rate. Deputy Ó Snodaigh said the Minister for Finance must use his new found influence on the banking sector to ensure that the benefit of this cut is passed on to mortgage holders immediately.

Speaking today as news of the interest rate cut broke Deputy Ó Snodaigh said, "I welcome this move from the European Central Bank as it has the potential to ease some of the burden on mortgage holders throughout the state who are struggling to keep up with repayments in the current economic climate.

"It also has the potential to increase the disposable income of thousands of homeowners in the state thus increasing consumer spending and stimulating economic growth.

"However, if this move is to have this desired effect it is essential that the benefit of the cut is passed on to mortgage holders immediately. The banks never waste anytime increasing mortgage repayment rates when the interest rate increases and so should not waste any time cutting them when the rate is cut.

"I am calling on the Minister for Finance to use his new found influence on the banking sector to ensure that the benefits from this cut in the European Central Bank interest rate are passed directly on to mortgage holders immediately." ENDS

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