Permanent TSB may absorb initial ECB rate hikes, CEO says

The first transfer of loans from Ulster Bank to Permanent TSB is scheduled to begin in the final quarter of this year

"I think it's fair to say that Irish banks, given their liquid position and given where they are, can withstand for a portion of time some of those interest rate increases," Eamonn Crowley (pictured, right) said. Photo: Fennell Photography

Permanent TSB may choose to absorb the first two rounds of European Central Bank interest rate hikes and not increase its own mortgage pricing in a bid to grow its market share, the bank's chief executive has said.

The ECB outlined plans this month to end quantitative easing on July 1 and then raise rates by 25 basis points on July 21. It plans to hike again on September 8 and go for a bigger move, unless the inflation outlook improves in the meantime.