| 13.6°C Dublin

Ulster Bank to cut variable rate by 0.2pc

ULSTER Bank said yesterday it would cut its variable rate by 0.2pc from February 1.

The reduction will see monthly repayments come down by just €11.50 for every €100,000 borrowed. The bank came in for strong criticism after it failed to pass on the two recent cuts in European Central Bank (ECB) rates.

Bank boss Jim Brown rebuffed demands from the Taoiseach and Tanaiste to cut the bank's variable rate at a face-to-face meeting in November.

Yesterday it said it was now reducing the variable rate because its costs of funds have dropped. It insisted its costs of funds were not related to the ECB rate as it sources most of its funds outside the eurozone.

Ulster Bank has the second highest variable rate at 4.95pc, after Permanent TSB which has a rate of 5.19pc.

Irish Independent