Ian Guider: Why the banks don’t want rate cuts

Agreeing to a voluntary reduction now might stave off legislation, writes Ian Guider

18th May, 2016
Fianna Fáil wants to give the Central Bank the power to cap rates

Why is it that some banks still have variable rates above four per cent when their cost of funds is much lower? There's no simple, and honestly, easy answer. Sure the banks can access wholesale funding at very cheap rates. They can also borrow almost limitless amounts from the European Central Bank at nothing and will be able to do so for many years.

Yet, one of the obvious reasons rates still remain high compared...

Subscribe from just €1 for the first month!

Exclusive offers:

All Digital Access + eReader

Trial

€1

Unlimited Access for 1 Month

Get basic

*New subscribers only

You can cancel any time.

Annual

€200

€149 For the 1st Year

Unlimited Access for 1 Year

You can cancel any time.

Quarterly

€55

€42

90 Day Pass

You can cancel any time.

2 Yearly

€315

€248

Unlimited Access for 2 Years

You can cancel any time.

Team Pass

Get a Business Account for you and your team

Share this post

Related Stories

Private rental sector remains strong despite Covid-19

How the programme for government will shape housing

Insight Niall Byrne 5 months ago

Comment: US must defuse Covid-19’s ticking time bomb of debt

Insight Todd G Buchholz 6 months ago

Comment: The recovery will be more U than V-shaped

Insight Larry Hatheway 6 months ago