AIB to pass on interest rate hike

THE country’s largest bank, AIB Group, has announced it is to pass on the full 0.25% interest rate hike to borrowers with effect from today.

This will have the effect of pushing up the cost of borrowing on mortgages, personal and business loans.

This follows the interest rate increase of 0.25% announced by the European Central Bank on March 2, its second since December 2005 when rates were also raised by 0.25%.