It's not that they can't lend it out they are required by regulations to keep a large proportion in "safe assets" government bonds , it's basically cheap money for governments that's what you are doing when you leave your money on depositNot any time soon .
Irish banks are awash with deposits. More than they need or want. They can't lend it out so have to put it in government bonds or deposited in the ECB attracting negative rates. They will be happy for you to take your deposits elsewhere.
Factor in Ulster Bank deposits will need to find a home - further excess supply - and no reason for deposit rates to tick up.
Always the potential that the likes of raisin might attract a lot of deposits but I doubt Irish banks are alone with having excess deposits.
It's not that they can't lend it out they are required by regulations to keep a large proportion in "safe assets" government bonds , it's basically cheap money for governments that's what you are doing when you leave your money on deposit
Below you see 15-year fixed rate mortgage costs (top) and retail deposit rates (bottom) in the US>In the US, increases by the FED, have caused slight increases to the average deposit rates. Maybe we will see some token increases here too.
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