Kenny urges banks to pass on interest rate cut

Taoiseach Enda Kenny has today urged banks to pass on the most recent ECB interest rate reduction to its variable-rate mortgage customers.

Taoiseach Enda Kenny has today urged banks to pass on the recent ECB interest rate reduction to its variable-rate mortgage customers.

He said that there are no plans to introduce legislation to force them to do so, however.

Variable rate customers at three banks, AIB, Ulster Bank and National Irish Bank, will not benefit from the latest rate-cut, which was announced last week.

Speaking in the Dáil, Mr Kenny said bank bosses would be called to a further meeting with the Government in the new year, and urged them to pass on the savings to their customers.

"I welcome the decision of EBS, permanent tsb and the Irish Bank Resolution Corporation to pass on a further reduction to variable rate customers and I obviously encourage the other banks to follow suit," he said.

"The reason ... for the ECB announcing interest rate reductions was to be able to relieve pressure on hard-pressed mortgage payers, so that banks wouldn’t be making a financial killing."

Mr Kenny also ruled out reversing cuts to family income supplement for those on the carers' allowance.

The Taoiseach says a reversal of these cuts is not possible, given the state of the public finances.

"Government have to make choices," he said. "None of them are easy, and certainly none of them are palatable.

"But insofar as you can possibly do it, within this situation, you try to protect those who are vulnerable and those who are isolated, and those who are caught in that trap."