Taoiseach won't interfere in AIB rates rise row

Taoiseach won't interfere in AIB rates rise row

Taoiseach Enda Kenny has insisted the government cannot intervene in mortgage rate increases.

His comments came in the wake of AIB’s two interest-rate hikes in two months.

Amid opposition claims that the government is abandoning struggling homeowners, Mr Kenny said it is necessary for the bailed-out bank to return to profitability.

AIB announced its standard variable mortgage rate will increase by 0.5% to 4% from November 13th. Some 70,000 homeowners are expected to be hit with the rise, which will see repayments on a €200,000 variable rate mortgage shoot up by €120 a month.

The Taoiseach said the government has made it clear in the past that it cannot advise banks on the rates they set.

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