Sunday 19 November 2017

European Commission rails against plan to cap interest rates

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Colm Kelpie

Colm Kelpie

The much-promised law that will give the Central Bank the power to cap mortgage interest rates will harm financial stability and bank competition, the European Commission has said.

Objections to the mortgage rate cap law have already come from the European Central Bank, despite the fact that such caps are common across Europe, and the International Monetary Fund.

The bill is currently going through pre-legislation scrutiny by an Oireachtas Committee because of the fears it could contravene the Constitution, and is unlikely to be enacted until later in the year at the earliest.

Irish Independent

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