BPFI statement re ECB interest rate announcement
Thursday 6th June – BPFI and its members note today’s announcement by the European Central Bank (ECB) in relation to its monetary policy decision.
Speaking after the announcement Brian Hayes, Chief Executive, BPFI said: “Over the last two years, which has seen a series of 10 separate interest rate increases, lenders have sought to take a balanced approach in the pass through of these rates mindful of the cost of living challenges which households have had to contend with.”
“When comparing rates across the eurozone member states, banks in Ireland have passed through the third lowest increase in new mortgage interest rates between May 2022 and April 2024. In fact, while the ECB has raised interest rates by 4.5% points, the average rate on new mortgages in Ireland has only risen by 1.51% points, or a third of the full ECB increase.”
“The latest data from the Central Bank of Ireland shows that of the outstanding stock of mortgages for principal dwellings 18% are on tracker rates for whom today’s announcement will be welcome. A further 67% of mortgage accounts are on fixed rates with 15% on variable rates.”
“Interest rates and pricing of lending is a commercial matter for each bank or non-bank lender that operates in the market place. In addition, lenders are legally prohibited – under strict competition rules – from signalling any future pricing change either publicly or privately.”
ENDS/
Note: Banking & Payments Federation Ireland (BPFI) represents the banking, payments and fintech sector in Ireland. Together with its affiliates, the Federation of International Banks in Ireland, and the Fintech & Payments Association of Ireland, BPFI has over 110 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.
Contact: Jillian Heffernan, Director of Communications, 087 9016880, jillian.heffernan@bpfi.ie.
