Mortgage rate increase is fair, says AIB chief
The chief executive of Allied Irish Bank has said that the recent decision to increase mortgage rates is fair.
The bank is increasing variable rates by up to 0.4% at a time when the European Central Bank has signalled a possible decrease in rates.
David Duffy said that the bank has to increase rates now.
"Our rates, if you look at them, they're not the highest in the market," he said.
"We have to adjust to the reality of our cost of funding. If I buy something for €200 and sell it for €150, eventually I'll go out of business.
"This is no different for a bank. It is regrettable, we're very sympathetic… [but] it is fair to charge a market price for a product."
Earlier he refused to comment on speculation regarding his own salary happening about his salary as it would be "a little indiscreet before we respond to the Minister [for Finance]" on cost savings of between 6-10%.
