John Drennan: AIB to turn screw and hike cost of mortgages
State-owned bank tells TDs of plan to raise its rates for homeowners
ALLIED Irish Banks is determined to increase the cost of mortgages and other products -- despite last week's European Central Bank decision to cut its key interest rate to a record low of 0.75 per cent.
The revelation that the State-owned bank is pressing ahead with price increases comes as a crushing blow for hard-pressed homeowners.
And the fraught relationship between the Government and AIB is expected to deteriorate further in the wake of the new strategy -- outlined by CEO David Duffy -- to restore the bank to profitability.