Shares in AIB and BoI hold gains chalked up this year despite interest rate cuts getting closer

The prospect of the ECB cutting interest rates this year ought to have dented the prospect of a significant increase in income for the Irish banks but their shares have risen

AIB shares have risen 21% since the start of the year.

Shares in AIB and Bank of Ireland have held onto significant gains since the start of the year despite interest rate cuts by the European Central Bank drawing closer.   

The ECB strongly signalled this week it will unveil its first rate cut in June after aggressively hiking its deposit rate to 4%, the highest level since the birth of the euro almost 25 years ago.