Photo credit: Gript

Government can’t protect people from interest rate hikes – Donohoe

The government cannot protect the public from rising interest rates, according to Finance Minister Paschal Donohoe.

The comments were made during a Newstalk interview with Pat Kenny this week, after the European Central Bank (ECB) announced yet another interest hike.

The 0.75% increase is expected to affect as many as 500,000 people’s tracker and variable rate mortgage homes, and could have severe consequences for many households’ bottom line amid the ongoing cost of living crisis.

The move is not expected to be the last hike of its kind either, with some speculating that rates could hit 2% by December. If this materialises, it could add as much as €180 to some people’s monthly mortgage repayments.

Discussing the matter with Pat Kenny this week, Minister Donohoe said that the government was not able to protect the public from the interest rate hikes.

“I, nor indeed any government, cannot bring in measures that can compensate for what’s going to happen to changes in interest rates,” he said.

“Indeed, if we were to do so, it would be counterproductive and potentially a new threat. However, we are bringing in other measures to help with the cost of living overall.”

The Minister said that other options would be made available to mortgage holders in an effort to combat the ongoing crisis.

“Changes that are happening in interest rates, I accept, are going to have an effect, and I do acknowledge that,” he said.

“Over the recent period, over 80% of the new mortgages that are being issued are fixed-rate mortgages, which does offer a degree of insulation for the future.

“There are still switching opportunities available from banks to allow mortgages holders to get better value.”

Share mdi-share-variant mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-printer mdi-chevron-left Prev Next mdi-chevron-right Related
Comments are open

Should Fr Sheehy apologise to Simon Coveney?

View Results

Loading ... Loading ...