Higher rates ‘won’t bolster banks’

Raising interest rates is not the best way to deal with the fallout from erratic property lending, the deputy governor of the Central Bank has said.

In a speech at NUI Galway yesterday, Stefan Gerlach said Ireland could follow examples set by other small eurozone economies in guarding against the fallout of property sector crashes.

“Capital requirements for mortgages for buy-to-let properties could be increased, relative to those for primary dwellings.