Macroeconomic simulations published at the time of the Budget suggest that a lower-than-expected interest rate environment would be likely to result in greater-than-forecast growth in economic activity and employment. I, as Minister for Finance, have no statutory role in relation to the mortgage interest rates charged by regulated financial institutions. It is a commercial matter for the banks concerned.
This interest rate is determined taking into account a broad range of factors, including European Central Bank base rates, deposit rates, market funding costs, the competitive environment and an institution’s overall funding.