Pressure on as banks defy call to cut rates

PRESSURE mounted on the country’s two largest banks to cut mortgage interest rates last night after a warning by Taoiseach Bertie Ahern that they were morally obliged to act to ease the burden on hard-pressed customers.

Four financial institutions have passed on the 0.5% reduction announced by the European Central Bank (ECB) last Thursday.

Permanent TSB, National Irish Bank and ACC Bank yesterday followed the example of IIB Homeloans, which was first to make the move last Friday.