IBF Statement on ECB Rate Reduction

The latest move by the ECB to further lower the base rate by 0.5% is welcome in helping towards easing lending conditions for customers. Interest rates are a matter for individual institutions in a competitive environment – with due regard to the impact on the cost of funds, the interests of depositors as well as to their important role in supporting the wider economy. The benefit of previous interest rate reductions is reflected in Ireland’s being among the lowest in the euro area for average housing loan costs.