Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The views the Deputy is expressing are shared widely by Members on all sides. As I said in my response, a previous deputy Governor of the Central Bank indicated that within its existing powers and through the use of persuasion, it would continue to engage with specific lenders that appear to have standard variable rates set disproportionate to their cost of funds. I will speak to the Governor of the Central Bank again and express the views expressed by Deputy McGrath and will indicate that those views are held generally in the House. I will ask him to consider what influence the Central Bank can bring to bear to bring variable mortgage rates closer to the cost of funds. However, the market movement is in that direction at present. We hope further progress can be made. New mortgages are available at much lower interest rates than the rates the Deputy has cited, but I hope existing mortgages also gain from the general downward movement in interest rates across Europe.

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