asked the Minister for Finance whether the increase of interest rates of the commercial banks was made with the knowledge and approval of the Government; and, if so, if he will state the reasons for such approval.
Ceisteanna—Questions. Oral Answers. - Interest Rates of Commerical Banks.
58.
In view of the rise in interest rates in Britain and the Six Counties following the increase in Bank of England rate from 4% to 5%, an increase in bank deposit rates was necessary here to safeguard the availability of funds for domestic needs and this in turn necessitated an adjustment of lending rates.
I was duly informed of the increases proposed and considered them reasonable and appropriate in the circumstances.
Can the Minister say whether the two increases mean a decrease or an increase in the overall position or do they approximately equate?
I think they approximately equate. As the Deputy is probably aware, we did not agree on that point.