Michael Dowling: Irish banks to benefit from ECB rate hike

Irish mainstream banks will benefit more than their European counterparts by higher interest rates as net interest income accounts for 80% of Irish retail banks' income, compared to 54% in Europe.

Permanent TSB has indicated that it may absorb the first and possibly the second round of ECB interest rate increases. Picture: Sasko Lazarov/RollingNews.ie

The ECB will announce its first interest rate hikes in over a decade this week. It has provided plenty of guidance as to what will be announced.

Interest rates are set to rise by a minimum of 0.25%, or a maximum of 0.5%.