Monday, 5 January 2009

Banks need to pass on rates

“High EURIBOR rates have been cited by Irish banks as a reason why interest rate cuts have not been passed on in recent weeks and there must be firm measures made to encourage to the marketplace to re commence lending.” Said Healy Hynes of Hynes Real Estate Alliance, Athlone. In its 10-year history, the ECB has not cut rates below 2 percent, nevertheless Mr. Hynes is anticipating the ECB to drop rates at the January meeting seeing a target of 1.5% by mid-2009. “Although it was on the cards before this week, in light of the Feds historic move to a rate of 0.25%, the ECB only has one place to go, and that’s down”