Banks do the RATE thing.. WORLD ECONOMY CRISIS BORROWERS WILL GET CUT IN INTEREST.Byline: BY EOIN REYNOLDS IRISH consumers scored a victory over the banks yesterday when lenders caved in to pressure and dropped their interest rates. The European Central Bank imposed a 0.5 per cent cut this week to ease the burden on borrowers and mortgage holders. There were fears that lenders would keep interest rates high so they could cream the cash off customers. But when AIB announced they were lowering their rates late on Wednesday night, the majority followed suit. Insiders said banks could not risk a customer backlash that would see them switching to rivals. However, some institutions are holding firm in the hope they can pocket the extra cash by refusing to drop their charges in line with the new ECB See electronic code book. rate. Yesterday's rush saw Bank of Ireland This article is about the commercial banking company Bank of Ireland. For the central bank of the Republic of Ireland, see Central Bank of Ireland. The Bank of Ireland (Irish: Banc na hÉireann , AIB, Ulster Bank, First Active, Halifax and Bank of Scotland Bank of Scotland plc is a commercial and clearing bank, based in Edinburgh, Scotland. With a history dating to the 17th century, it is the oldest surviving bank in what is now the United Kingdom, and is the only commercial institution created by the Parliament of Scotland to slash their interest rates. Late in the day National Irish Bank followed suit, announcing its customers would benefit from the full 0.5per cent drop. Irish Life & Permanent said it was still "reviewing the situation". Last week Irish taxpayers bailed the banks out with a EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 400billion guarantee after they landed themselves with huge debts. In the wake of that unprecedented step politicians and the Consumer Association of Ireland condemned those banks that had failed to get in line. Labour leader Eamon Gilmore said the Government should force lenders to pass on the reduction. He told TDs: "It is unthinkable banks would not pass on that reduction in interest to their customers and the Government should direct the banks to do so. Former Tanaiste Mary Harney also urged the banks to pass on the savings. She added: "Liquidity is important for banks and so too is customers." Savings available range from about EUR60 to more than EUR120 per month for the average homeowner. Those who are paying a tracker mortgage will benefit from the cut, regardless of who they are dealing with. However, the banks set their own interest on the standard variable rate mortgages. Most homeowners are paying at the standard rate and it is those customers who can lose out to banking greed. The rate-cut takes effect next Wednesday and the banks said customers will benefit five days after that. THE Dow Jones Industrial Average Dow Jones Industrial Average The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. fell below 9,000 for the first time since 2003. Higher borrowing costs and slower consumer spending spurred fears carmakers, insurers and energy companies will be the next victims. New rate means monthly saving of EUR74 on EUR250,0000 mortgage CAPTION(S): REDUCTION Eamon Gilmore |
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