'Govt cannot force banks to reduce interest rates'

The Tanaiste, Mary Harney, has said the Government has no power to force Irish banks to pass on yesterday's cut in European interest rates to their customers.

However, speaking in Dublin, Ms Harney said she would be angry and disappointed if the Irish banks failed to reduce their interest rates by 0.5% in line with the European Central Bank, which brought its main lending rate down to 2% yesterday.