National Irish Bank to push ahead with 1% rate hike

National Irish Bank is to raise its mortgage interest rate by 1% on Friday.

The move comes despite a decision by the European Central Bank to reduce its key lending rate by 0.25%.

The bank's decision puts it in direct opposition to the Financial Regulator, Matthew Elderfield.

Mr Elderfield has confirmed he does not have the power to compel the bank to pass on the ECB rate cut.