Call For Central Bank's Research Report To Be Published

The Finance Minister is being urged to publish the Central Bank's research in relation to why variable mortgage rates are so high in Ireland.

Fianna Fáil Finance Spokesperson Michael McGrath said Minister Michael Noonan should publish the report so that everyone can see the Central Bank's logic for variable rate mortgage holders in Ireland paying double the euro area average.

He said: "So far, all we have are selected leaks which point to the Central Bank siding with the banks as opposed to the mortgage holders.


"The truth is that 300,000 variable rate mortgage holders are paying way over the odds for their mortgage in Ireland. A number of banks continue to charge up to 4.5% on variable rate loans despite their cost of funds falling towards 1% in recent times.

"The bottom line is a variable rate should move in line with market conditions. Banks are now able to access funds at record low rates from the wholesale markets, the ECB and their deposit base. They have failed to pass on that benefit to their variable rate customers.

"Are we really suggesting that, if market conditions deteriorated, the banks would need to be asked twice to increase their variable rate?

"I strongly believe the Central Bank is not placing a sufficient emphasis on its consumer protection role."

(CD/JP)