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Friday 24 March 2023 Dublin: 11°C
Sam Boal/Photocall Ireland David Hodgkinson, Executive Chairman of AIB, speaks to the media as he leaves Government buildings today
AIB will not pass ECB interest rate cut to customers
The bank says it hasn’t passed on the ECB’s past two rate increases to customers and, similarly, would not be passing on the recent cut.

AIB HAS ANNOUNCED that it will not pass the recent interest rate cut by the European Central Bank to its customers.

David Hodgkinson, Executive Chairman of AIB, announced the decision to the Taoiseach and Finance Minister this afternoon.

A spokesperson for the bank told that AIB “hadn’t passed on the past two rate increases” by the ECB and, similarly, would not be passing on the cut.

He said that AIB’s rates were “under review” and pointed out that the bank had not altered its interest rates since August 2010.

Other banks

In response to the ECB’s announcement, two banks operating in Ireland have decided to pass the cut on to customers: KBC Bank Ireland and Permanent TSB.

KCB said that both tracker and variable rate mortgage customers will see a decrease of 0.25 per cent in their mortgage repayments from 1 December. Permanent TSB also said it would pass on the cut in its variable and tracker mortgages, and would introduce a new variable rate of 5.44 per cent on 2 November.

National Irish Bank  said it would not be adjusting its standard variable rate but would pass on the cut to tracker mortgage customers.

The position of Ulster Bank and Bank of Ireland on the matter is still unknown.

Read: Surprise! ECB cuts interest rate to 1.25 per cent>

Read: National Irish Bank says rate hike not related to ECB cut>

Read: Two banks will pass on ECB interest rate cut to mortgage holders>

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