Pressure on lenders to pass on rate cut to customers

The Junior Finance Minister says the Government may have to use its influence if some banks covered by the bank guarantee scheme choose not to pass on yesterday's ECB rate cut to customers.

Some banks - like Permanent TSB - have already confirmed the reduction will be reflected in their rates - while others have yet to comment.

The Financial Regulator Matthew Elderfield has already warned banks that he wants to halt variable interest rate hikes.

Minister Brian Hayes says the Government can try to intervene:

[podcast]http://www.highlandradio.com/wp-content/uploads/2011/11/09haye.mp3[/podcast]