On Thursday (late) 2Pack observed that
thepropertypin.com/viewtopic … thetically
On Sunday the Sunday Business Post took up the gauntlet and asked the questions 2Pack told RTE to ask . The answers were
PRECISELY what 2Pack expected them to be . Kudos to the SBP for being on the ball with this one, nice one David .
thepost.ie/post/pages/p/stor … qqqx=1.asp
**Banks may not pass on ECB interest rate cuts to borrowers
10 February 2008 By David Clerkin
Hopes for substantially lower mortgage rates in the coming months are set to be dashed, after the country’s top banks refused to commit to passing on the benefits of an expected ECB rate cut to borrowers.
**None of the banks contacted by The Sunday Business Post said they were preparing to adjust their mortgage rates to benefit borrowers if the ECB cuts its benchmark rate by 0.25 per cent, a move that is expected after a perceived change in tone by ECB president Jean-Claude Trichet last week.
Bank of Ireland and Permanent TSB, which are the country’s top two mortgage lenders – and which recently increased their headline borrowing rates, even though ECB rates have been frozen since last summer - refused to comment on whether they would pass on the expected cuts to borrowers.
‘‘We couldn’t comment on something that may or may not happen,” said a Bank of Ireland spokeswoman. The head of trading at Bank of Ireland’s treasury division said last week that a 0.25 per cent cut in the ECB rate was likely by April and that rates would fall further later in the year.
A Permanent TSB spokesman said the bank would not comment on ‘‘hypothetical situations’’.** Denis Casey, the chief executive of the bank’s parent, Irish Life and Permanent, said last week he expected the ECB rate to fall by 0.5 per cent this year.
Ulster Bank, which also owns First Active, said it constantly reviewed prices and products. A spokeswoman said the bank would review its position if ECB rates changed and it needed to lower rates to remain competitive.
An AIB spokesman said it ‘‘continually reviews our products and prices, so I couldn’t give an absolute assurance’’.
Now there is a known known if ever I saw one
Bank 'economists ’ bang on about rate cuts that their bosses will not pass on , and these 'economists’know perfectly well they won’t.
If the banks wanted certainty they would GUARANTEE a lockstep reduction in mortgage rates as the ECB cut the base rate.
NOTHING short of that can possibly stabilise the housing market.
So what are you trying to tell us. 1 can make a difference. hum… I have some ideas on cold fusion and world hunger.
Check out the front page of business section of Sunday Times.
AIB dropped Fixed Rates on Wed
EBS dropped Fixed Rates on Fri
IP/TSB is to follow from Feb 18th
Ulster Bank has recently dropped rates
IIB have recently dropped rates
Fixes are a fraction of the market and if fixed rates are dropping you need to time your fix for when the fix cycle is at bottom …say getting a 4.5% rate for 10 years which is not possible now.
Fixing NOW is stupid, best wait .
Trackers are a fraction of the market .
Variables are the vast bulk of the market , they are not going to get anything from the first .25% ECB cut and will get a percentage of the second one at best.