The Construction Industry Federation has claimed any bank failing to pass on the full ECB interest rate is "acting against the economy's interests".

Federation boss Tom Parlon said: "This is the fourth ECB cut in a row and part of its strategy to help boost consumer confidence across the EU.

Mr Parlon said for somebody with a €300,000 mortgage the four cuts have reduced their mortgage payments by €400 each month, a very significant saving.

"The economy only gets the benefit of these savings when the banks pass on the cut in full," he insisted.

-- Advertisement --

Mr Parlon said the Government must make clear its expectation that all banks covered by the guarantee scheme, will pass on the interest rate cut in full to all customers on variable interest rate mortgages in addition to those on trackers.

"The same applies to business customers of our financial institutions. Small businesses in all parts of the country are being squeezed when it comes to existing loan and overdraft arrangements and when trying to access new finance.

"It is vital for jobs in the economy that these businesses are supported," he said.

The Federation also said any attempt to increase taxes now would undermine the ECB’s low interest policy: "There is no point in cutting interest rates at European level to stimulate activity for that to be undermined by tax increases at national level."

(PR/BMcC)