Monday June 1, 2020

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

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

Ian Guider

Markets Editor

@ianguider
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...

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