asked the Minister for Finance if he will ensure that bank rates in this country will not be increased as a result of the recent decision to increase the bank rate in Britain.
Ceisteanna—Questions. Oral Answers. - Bank Rates.
I have had discussions with representatives of the Irish Banks' Standing Committee on the implications of the recent change in the bank rate in Britain. I represented to the banks that the conditions underlying the increase in Britain do not operate here at present. Recognising this, the banks have, in the national interest, decided not to make any change in their lending rates here. I should like to express my appreciation of this decision.
In thanking the Minister for a very welcome announcement, might I ask if such consultation with the banks represents a new departure, or does it indicate the establishment of a very desirable precedent?
So far as I understand, this, with the occasion last month, is the first occasion on which the Irish banks have not automatically changed their rate, following a change in the bank rate in Britain.
Might I ask if it is necessary for the banks to receive the sanction of the Minister for Finance, if they wish to increase the bank rate?
There is no such legislation here.
There is no need, in other words?
There is no such ordinary legislation here, but there is, of course, emergency legislation.