DEPUTY Pearse Doherty
has welcomed the ECB quarter percent rate cut this
afternoon and called on the Government to ensure the
rate cut is passed to mortgage holders and
businesses.
“When the ECB last cut its rates, the banks in this
State dragged their heels about passing it on, with
AIB eventually passing it down and BoI only passing
on a marginal rate cut," said the Sinn Féin finance
spokesperson.
“With 115,000 families in mortgage distress and very
little help coming from this Government, even from
its Personal Insolvency Bill, many people will have
been looking to the ECB today and hoping that the
rate would be cut and passed on.
"(Businesses) will be hoping that this time the
Government will go beyond posturing and ensure the
banks follow through on a rate cut. They know that
if the rate went up, the banks would be quick off
the mark in that regard.
Meanwhile, the Donegal TD also cautiously welcomed
the National Treasury Management Agency's raising of
€500m in an auction of three month treasury bills at
a rate of 1.8%. It was Ireland's first return to the
international money markets in two years.
“The auction this morning is a welcome first step in
terms of short-term bill issuance, but must be
greeted with caution. The fact that a rate of 1.8%
was achieved is better than expected, however
three-month bills are a huge step away from proper
bonds.
"This State will have to go to the bond market in
the first part of next year, and how the
international market perceives us then cannot be
speculated against what happened today." |
