BOI and AIB to pass on ECB rate cut

The country's two biggest banks - Bank of Ireland and Allied Irish Bank - have announced that they are to pass on last week's 0.5% interest rate cut by the European Central Bank to their customers.

The move follows criticisms by both the Taoiseach Bertie Ahern and Tánaiste Mary Harney that all financial institutions were obliged to pass on the benefits of a rate cut to their customers.

Both the BOI and AIB will cut their rates for new and existing customers from June 13 and 16 respectively.

Permanent TSB, National Irish Bank and ACC Bank announced yesterday that they would be revising their rates in accordance with the ECB rate cut.

IIB Home Loans were the first to cut their rates last Friday.