New KBC clients denied full rate cut

KBC Bank, formally IIB Bank, is passing on just half of the recent 0.5% ECB rate cut to new customers while passing on the full cut to existing customers.

Industry sources said this means the full benefits of the monetary policy are not being realised by new customers, dampening the ability to borrow.

Most banks are passing on the rate cut in full. The bank will meet again next week to decide if it will cut rates again.