Dáil Éireann Debate, Thursday - 14 November 2013
58. Deputy Michael McGrath asked the Minister for Finance his views on whether it would be beneficial for the economy if the banks passed on the ECB interest rate reduction; and if he will make a statement on the matter. [48781/13]
Amharc ar fhreagraMacroeconomic 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.
