Economic Management Council to meet banks; Noonan to meet Honohan

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110quests

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Having heard Liam Toomey on Prime time and Enda Kenny on S O'R this am, i would not be holding out hope of any pressure coming from Government on SVR rates .
 
The general consensus is enda thinks banks should lower svr but there's nothing they can do!
 
Enda Kenny was interviewed on Today with Seán O'Rourke and said that the banks should pass on rate cuts to mortgage holders.

He also said that they have no role in setting rates, but there is a lot the government could do
  • Call in the boards of the lenders and ask them to explain why the rates are so high
  • Ask the Central Bank why it pretends that the mortgage rates in Ireland are lower than they actually are
  • Ask the Central Bank if it wants the power to control interest rates
  • Ask the Competition and Consumer Protection Council to investigate why rates are so high
 
The Minister for Finance gave this answer this morning to a question tabled by Michael McGrath.

I will speak to the Governor of the Central Bank again and express the views expressed by Deputy McGrath and will indicate that those views are held generally in the House. I will ask him to consider what influence the Central Bank bring to bear to bring variable mortgage rates closer to the cost of funds. However, the market movement is in that direction at present. We hope further progress can be made. New mortgages are available at much lower interest rates than the rates the Deputy has cited, but I hope existing mortgages also gain from the general downward movement in interest rates across Europe.
 
Brendan Burgess said:
The Minister for Finance gave this answer this morning to a question tabled by Michael McGrath.

I will speak to the Governor of the Central Bank again and express the views expressed by Deputy McGrath and will indicate that those views are held generally in the House. I will ask him to consider what influence the Central Bank bring to bear to bring variable mortgage rates closer to the cost of funds. However, the market movement is in that direction at present. We hope further progress can be made. New mortgages are available at much lower interest rates than the rates the Deputy has cited, but I hope existing mortgages also gain from the general downward movement in interest rates across Europe.
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Has Noonan not realised that base rates have been declining since 2008 ? Maybe he thinks there's a time lag before ecb base rate reductions feed through to SVRs !! SVRs and base rate movements decoupled some time ago Mickey boy.
 
The only power the Central Bank has is to approve or deny the rate that the Financial Institution wants to apply. That's about it.

I guess give it a few weeks to wait and see if any pressure is brought to bear other than that we can all complain to EU Commission for collusion and anti-competitive practices
 
Michael Noonan has just announced in the Dail that he has arranged to meet Governor Honohan tomorrow.

Other bits of his speech:
"If the banks were to return to unsustainable low interest rates ..."

I don't think that anyone has suggested this.

Brendan
 
Hopefully Minister Noonan brings himself to be strong and clear tomorrow in his meeting with the Governor of the Central Bank.
 
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