Why is AIB dragging its heels over variable mortgage interest rate cuts?
So, AIB rocked up to the Oireachtas Finance Committee last week and said it would be cutting variable mortgage interest rates ... but not yet. ECB money costs them a fraction of what they're lending it out at so why the delay?
Well, it's because variable mortgage holders are needed to prop up the loss-making Trackers. Yes, it's unfair and no, the Government won't intervene. It really wants AIB sold off, and it can't be until it's making money, hence the piecemeal approach.
As for BoI? Well, no excuse there.