Banks’ refusal to cut rates is ‘morally unacceptable’

Taoiseach Enda Kenny has said it is morally unacceptable that banks continue to charge sky-high interest rates for mortgages.

His comments come as the Government prepares to press lenders into lowering costs for borrowers.

Bank of Ireland and Ulster Bank this week ruled out any imminent rate cuts for customers with variable rate mortgages. The country’s six main lenders will be confronted with evidence next month that they are borrowing at much cheaper rates compared to what they charge variable mortgage holders.