Desmond J. O'Malley
Ceist:57 Mr. O'Malley asked the Minister for Finance the steps, if any, the Government proposes to take to facilitate a reduction in interest and mortgage rates in relation to the recent devaluation of the Irish pound.
Written Answers. - Interest/Mortgage Rates.
Interest rates are primarily a matter for the Central Bank. The bank seeks to keep interest rates as low as possible consistent with the maintenance of our exchange rate policy. The Government was very conscious of the position of mortgage holders and other borrowers in deciding to devalue the Irish pound — since this devaluation interbank interest rates have fallen sharply. While it is too soon to say how quickly mortgage and retail interest rates can be reduced, it is hoped that significant reductions will take place in the course of 1993.