Hayes: Govt may pressure banks to pass on rate cut
The Junior Finance Minister has said that the Government may have to use its influence if some banks covered by the bank guarantee scheme choose not to pass on yesterday's ECB rate cut to customers.
Some banks - like Permanent TSB - have already confirmed the reduction will be reflected in their rates, while others have yet to comment.
The Financial Regulator Matthew Elderfield has already warned banks that he wants to halt variable interest rate hikes.
Minister of State for Public Service Reform and the OPW Brian Hayes said the Government can try to intervene in some instances.
"In some cases we have no control - they are international banks here and are not covered (by the bank guarantee scheme)," he said.
"But equally there are covered institutions… and I think we will have to use our influence if they choose not to hand them (interest rate cuts) on."
