Central Bank resists power on mortgage interest rates

The Central Bank has told the Government in a high-profile report sent to the Department of Finance that it does not want the power to force banks to slash variable mortgage interest rates.

A spokesperson for the financial regulator confirmed the stance last night, leading to calls from struggling mortgage holders for the Coalition to ignore the recommendation and force officials to take on the role whether they want to or not.

Responding to an Irish Examiner report yesterday that the document will contradict political clamour and find that customers are not being “gouged”, a Central Bank said the body is “not seeking” mooted new laws to force banks to reduce fees.