Banks have had it all own way for too long

THE outcry against the banks’ failure to respond unambiguously to the last ECB bank interest rate cut once again highlights the ambivalent nature of their role in society.

Pretty damning evidence exists that to date the banks have been far from enthusiastic in passing on the full 2.75% cut over the last 30 months to the consumer, be they business or personal clients. Several sources from the Irish Central Bank to the European Central Bank show Irish banks dearer than their European counterparts and with credit cards still charged at 18% against the 2% basic lending rate set by the ECB. The ECB policy of cutting rates was and is designed to stimulate economic growth.

As the economy slows to very modest levels of growth, cutting interest rates is a prime mechanism for boosting economic output.