Central Bank denies deserting holders of mortgages sold to vulture funds as rates soar (via IrishTimesBiz)
“I think you’re being unfair to say, Deputy, with all due respect, that we are washing our hands,” Central Bank governor Gabriel Makhlouf said to Mr Doherty, adding that the regulator is engaged in a “pretty intensive process” within its mandate with service providers behind the loans.
However, regulatory officials highlighted that they do not have powers to intervene in commercial decisions on the setting of interest rates. The weighted average new Irish home loans rate was 2.57 per cent in November, according to the Central Bank, a fraction of some of the rates being charged by investment fund servicers.
“We need to continue to increase rates at our meeting next week – by taking a similar step to our December decisions – and also at our March meeting, although our future policy decisions need to continue to be data-dependent given the prevailing uncertainty,” Mr Makhlouf told the Oireachtas finance committee. Still, he said that it would “not be surprising to see us continue on this path of interest rate rises beyond the first quarter”.
“Raising the policy rate also signals our commitment to price stability. It sends a clear message that we will not allow inflation to stay above 2 per cent and helps to contain inflation expectations, guarding against the emergence of self-reinforcing inflation dynamics and tackling the risk of a persistent increase in inflation expectations.”
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