NIB: We are not obliged to pass on ECB rate cuts

National Irish Bank has defended its decision to hike variable mortgage interest rates by almost 1% from Friday.

The bank said it had not increased its variable charges since 2008, and that it was not obliged to pass on European Central Bank rate cuts as it does not rely on ECB funding.

The move is in direct defiance of calls from the Taoiseach Enda Kenny, Finance Minister Michael Noonan and Financial Regulator Matthew Elderfield.

Sinn Féin's finance spokesperson Pearse Doherty said the Government needed to step in to prevent banks increasing mortgage repayments, and to make sure rate cuts were passed on.

"The Government should know that the lack of passing on the cuts…is putting mortgage-holders to the pin of their collars," he said.