AIB chief Colin Hunt warns it's too early to get 'overexcited' about oil price moderation

Mr Hunt cautions that global economy still faces multiple risks

AIB chief executive Colin Hunt on Bloomberg TV on June 16. The global economy still faces multiple risks even as the US and Iran agree to halt the war in the Middle East, AIB chief executive Colin Hunt has warned. Picture: Jose Sarmento Matos/Bloomberg

The global economy still faces multiple risks even as the US and Iran agree to halt the war in the Middle East, AIB chief executive Colin Hunt has warned.

“I would not get overexcited at this stage about a sustained moderation in oil prices,” Colin Hunt told Bloomberg TV, adding it’s “hard to say based on what we have seen overnight and in the past number of days” whether Ireland would see improved growth off the back of the agreement.  

“Every generation is condemned to deal with a black swan event, but we’ve had one every year,” Mr Hunt said, referring to events like Brexit, the Ukraine war, and US tariffs.

AIB expects domestic growth to slow this year as soaring costs driven by the Iran war dampen consumer demand. The effective three-month closure of the Strait of Hormuz has pushed up global energy prices, stoking inflation and the European Central Bank’s first interest-rate hike since 2023. US president Donald Trump is adamant the strait will reopen by Friday, allowing oil to flow again. Before the war, the waterway handled around a fifth of all oil supply in a global market of more than 100m barrels a day.

The European Central Bank raised interest rates last week, and Mr Hunt said AIB will make a decision on passing on interest rates after an asset liability commitee meeting later this month. "We're very conscious of the need to play our role ensuring the Irish economy remains resilient," said Mr Hunt. "Let's wait and see what happens."

Mr Hunt said the bank was maintaining its graduate recruitment at the same levels before the introduction of AI. "I firmly believe if we are to develop a pool of talent to lead the bank in the future, we will get them from graduate cohorts, and its very important we don't take away the bottom rung of the career ladder.

"Overall on AI, my view is we don't know where the tech will take us. But we need to respond to the first stages of this industrial revolution by being agile. We're still in the foothills of this revolution. 

"From our own perspective, we have increased our investment in technology to €400m a year and invested heavily in cyber defence, our number one priority." 

Bloomberg