AIB bows to Government pressure and cuts interest rates

AIB has bowed to Government pressure and performed a U-turn on its decision not to pass on the ECB mortgage interest rate cut.

The bank last night confirmed “following the meeting between AIB, members of the Government and the Economic Management Council, the board has decided to implement a 0.25% interest rate cut to its variable rate mortgages”.

AIB, Bank of Ireland and Ulster Bank had been hauled before Taoiseach Enda Kenny and senior ministers on Wednesday and asked to pass on the recent 0.25% ECB interest rate cut to mortgage holders. Their refusal, despite other major lenders this week doing so, forced the Government to ask the Financial Regulator to examine whether failing to pass on ECB decreases was anti-consumer.