AIB, Bank of Ireland and PTSB have so far absorbed most of the ECB rate hikes but with deposit rates now rising, this could change in coming months
AIB, Bank of Ireland and PTSB have so far absorbed most of the ECB rate hikes but with deposit rates now rising this could change in coming monthsBank of Ireland has increased its variable mortgage rate, and other increases could be pushed through in the coming months, according to Bonkers.ie. Photograph: Gareth Chaney/Collins Photos
Tracker mortgage customers saw their rates rise in line with the ECB increases each time, albeit from a low base during the era of ultra-low interest rates. And Bank of Ireland had also increased its fixed rates during that time, by 1.75 percentage points for new customers and by 1.25 points for existing ones.Paddy Cosgrave’s undoing exposes Web Summit’s glaring contradictions
To date, the Irish banks – AIB, Bank of Ireland and PTSB – have absorbed most of the ECB rate hike, with the exception of those on trackers. This was largely a factor of them being awash with cheap deposits, which were being used to part-fund mortgage lending. As noted by Darragh Cassidy of price comparison website Bonkers.ie, this move on deposits might now prompt an increase in mortgage rates.
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