Call for other banks to follow AIB's lead on variable rate cut

Call for other banks to follow AIB's lead on variable rate cut

A Fianna Fáil TD is calling on banks to follow AIB's lead and cut variable interest rates on mortgages.

Michael McGrath says Irish people are paying way over the odds and there needs to be more competition in the banking sector.

It comes as the CEO of Bank of Ireland appears before the Oireachtas Finance Committee today, where he is expected to come under pressure to offer long term solutions to those in mortgage distress.

Fianna Fáil's finance spokesperson Michael McGrath says variable interest rates need to drop.

"There is simply no justification for the banks continuing to charge well in excess of 4%t for variable rate products, and that needs to change," he said.

"We're paying way over the odds in terms of personal loans, up at around 12%, credit card interest rates around 20%, mortgages around 4.5%.

"We need more competition in the banking sector," he added.

More on this topic

Analysis: Interest Rates could well be still at zero come 2030Analysis: Interest Rates could well be still at zero come 2030

All eyes on interest rates around the worldAll eyes on interest rates around the world

Rate cut hopes stay alive for Irish borrowers even as downbeat Draghi delaysRate cut hopes stay alive for Irish borrowers even as downbeat Draghi delays

ECB policymakers reluctant to change interest-rate guidanceECB policymakers reluctant to change interest-rate guidance

More in this Section

Just Eat in bidding war with rival €5.7bn Dutch offerJust Eat in bidding war with rival €5.7bn Dutch offer

Greening of Cork could  send it top of investor listsGreening of Cork could send it top of investor lists

Revenues and profits fall at Waterford pharmaRevenues and profits fall at Waterford pharma

McDonald’s misses its profit goal on US rivalsMcDonald’s misses its profit goal on US rivals


Lifestyle

Put provenance first this season and make 'Made in Munster' the label to be seen in. With outstanding craftmanship and commitment to quality, these homegrown designers are making Munster-made fashion wish list worthy around the world. Shopping local has never looked so good. Carolyn Moore reports.Made in Munster: Shopping local has never looked this good.

Karen Cunneen-Bilbow Owner, Fabricate IrelandMade in Munster: ‘I turned my hobby into a business’

An invitation is extended to all to pay a visit to Bride View Cottage, writes Charlie WilkinsSeasonal cheer will spread early in Co Cork as an invitation is extended to all to visit Bride View Cottage

After a week of Fortnite Chapter 2, we think it’s fair to say Epic lived up to their name with the game’s ‘re-launch’.GameTech: Happy after a week of Fortnite Chapter 2

More From The Irish Examiner