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Banks must pass on cuts to families

THE country's major banks must pass on this week's interest rate cut to families. The 0.25pc cut will automatically benefit those on tracker mortgages, but homeowners with standard variable rates must wait to see if their bank opts to cut their rates.

The sums involved are not insignificant. The saving to those with an average-sized mortgage will be €90 a month.

In the current climate, this cash would be better placed in the hands of householders than the vaults of the banks.

While some institutions have committed to the cut, some of the country's biggest banks are steadfastly refusing to pass on the saving. This is despite a statement by Finance Minister Michael Noonan that they should do so.

Financial Regulator Matthew Elderfield has also stressed that the cuts should be passed on to standard variable customers.

The banks must now act -- and cut rates for all customers.