ECB interest rate cut must be passed on to mortgage holders – Doherty
Sinn Féin Finance Spokesperson Pearse Doherty has welcomed the announcement from the ECB today that it is to cut its interest rate.
Deputy Doherty said the onus is now on the government to ensure that the cut is passed on to mortgage holders by the Irish banks.
Deputy Doherty said;
“Today’s announcement from the ECB is welcome but it will be meaningless if the banks do not follow suit and pass on the cut to their customers.
“The onus is now on the government to ensure that Irish banks pass this cut on to mortgage holders.
“AIB announced an increase in its variable interest rate to come into force next month. This bank is outrageously trying to have its cake and eat it by availing of an ECB rate cut while increasing its own rate.
“This is a state owned bank and the government needs to stand up for struggling mortgage holders by forcing it into line.
“Sinn Féin will bring forward legislation to ensure that banks that were bailed out by the state seek approval from the Financial Regulator before making any changes to their rates.
“This will stop them hiking their charges at a time when the ECB is reducing theirs.”