ECB cuts interest rate to 1.25%

:D YES! Just in time for Christmas! :D

It seems the longer the crisis in Europe goes on, the better for us.
 
as I am on a tracker mortgage, any ECB rate cut is great. However, all the market uncertainty is no doubt eroding my pension fund, I am dreading the January statement.
 
Yeah nice! Of course its a reflection of a very weak economy so its not all good news overall.
 
higher growth than expected in the UK early this week one of our major export markets..
 
DB74 said:
I wonder how many will pass it on
Click to expand...

Permanent tsb bank has confirmed that it will pass on the reduction in full to customers on both Variable and Tracker Rate mortgages. The cut in rates will be effective from 21st November. The new SVR rate for permanent tsb bank – after this cut is introduced – will be 5.44%.

www.moneybackmortgages.ie
 
KBC Bank are also passing on the cut on variable mortgage holders but Ulster Bank have said they will not.

No news from BOI or AIB yet.
 
AIB not passing on cut as it hasn't increased it's variable rate since August 2010.
BOI not passing it on either.
 
still no comment from EBS regarding passing it onto it's variable rate customers?
Should I take it to mean that they're not gonna do it?
 
so frustrating, they had no problem raising the variable rate when the ECB went up. And just raising it randomly too of course.

Would've been nice if they could have confirmed officially that they weren't passing it on.
 
EBS has raised variable rates three times since the election despite promises by Gilmore that the state owned banks would not do so. 0.6% the week after the election and two further rises since. I assume the govt will now ignore Elderfields warning that these rises are leading to a rise in arrears and they will not pass on ECB cut in EBS.
 
i was biting my tongue as to whether to respond here given the wall of expectation, that just because cut its rates, the banks would cut variable rates. banks only take a portion of their funding from ECB - approx 60/70% I believe in Ireland. The remaining 30/40% has to come from ultra expensive deposits, term funding, capital etc.

The lack of even a basic understanding of the funding base of Irish banking is apparent here, and it would be great if someone would create a sticky post on the subject which could then be appended to any and all disccussions that arise every time ECB changes its rates, or banks changed their rates.

And before anyone jumps down my throat for showing a dissenting view - I am not on a tracker, and am on fixed, reverting to variable with NIB where the rates just went up 0.95%.
 
Fact remains that there is a huge variation in the SVR offered by the lenders who are effectively only in existence due to the inpetus of cash by johnny tax payer.

Ultimately the lenders are losing money based on their massive misprojections and miscalculations as to their exposures.

Bottom line is that they screwed up with their tracker offerings, will SVR customers forever be expected to fund this?

Perhaps..

But if thats the case and the lenders dont pass on reductions in the real lending rates, then there will be an increase in default / inability to pay.

Either way the tax payer will fund this, but its the manner in which the payment is extracted which is key.

The banks need to make money innovatively by banking. Not passing on reductions wont work...Not sustainable and ethically not viable.

PTSB and KBS are passing on rates (although may be late in the game for PTSB to try and get a PR coup as they are far and away the highert SVR in the country...6.15 down to 5.9%.....doesnt really rate well
 
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