In February it announced its first hike to variable mortgage rates. AIB, which is 53.4 per cent owned by the State, then waited until October to increase the interest rates on the fixed-rate mortgages it offers to borrowers, he said. Mr Hunt said the bank’s first step last July had been to eliminate the negative interest rates that applied to customers with €1 million or more on deposit with the bank. The second shareholder said it was “a crazy situation we are facing as Irish consumers, as Irish savers”, and took issue with Mr Hunt’s use of the word “shock” in his reference to a “very significant interest rate shock across the euro zone”, arguing that it was not a shock as “the writing had been on the wall” for central banks with respect to interest rates. Before it began hiking rates in July 2022, these rates stood at minus -0.5 per cent and 0 per cent respectively. Its deposit rate now stands at 3.25 per cent and its lending rate at 3.75 per cent. The agm took place shortly before the European Central Bank (ECB) announced a quarter-point increase in its main interest rates. That said, we continue to keep our product range and the pricing of that product range under review, and I look forward to having more to say on that in the coming months.” “We very deliberately took a cautious, conservative, measured, considered, staged approach to our response to how interest rates were evolving at a European level. “We are, as I said earlier, deeply conscious of the fact that we are a pillar financial institution in this country and we have a very broad array of customers, and we had to be conscious of our obligations,” Mr Hunt said.
Higher deposit interest rates are “on the agenda” at AIB, the bank said on Thursday, after it was criticised at its annual general meeting for offering “miserable” rates to savers.ĪIB chief executive Colin Hunt defended the bank’s decision not to pass on the full extent of the recent string of European Central Bank (ECB) interest rate increases to savers, noting that it had also held back from passing on the full extent of these hikes to mortgage borrowers.
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