Banks may not pass on future rate hikes, says minister

BANKS may not pass on future interest rate hikes to mortgage holders if they can cut costs elsewhere, according to Junior Finance Minister Brian Hayes.

He said the Government would take a “very tough stance” with banks so they can absorb any further interest rate hikes from the European Central Bank (ECB) which yesterday increased rates by 0.25%.

The Coalition came under pressure from the opposition to keep a commitment in the Programme for Government that mortgage holders would be spared some of the increased interest rates.