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.