Central Bank telling the truth some months and lies other months about mortgage rates

[Protocol]

Just to let you know that in the Quarterly Bulletin published by the CBI today, there is an article on new enhanced interest rate stats.

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[bdecuc]

Just to let you know that in the Quarterly Bulletin published by the CBI today, there is an article on new enhanced interest rate stats.

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I'm just a Joe Soap reading the report from a non-financial background. However

Irish new business loan-to-deposit spreads for households have increased sharply over recent years (Chart 9). Spreads have increased from circa 100 basis points at end-April 2012 to almost 379 basis points at end-April 2015. More recently, interest rate spreads have eased slightly to stand at 348 basis points at end-December 2015. Nevertheless, the loan-to-deposit spread in Ireland remains high compared to the euro area average. The elevated Irish spreads have predominately reflected a combination of downward pressure on term deposit rates combined with relatively stable pricing on loans, despite a funding environment that has seen successive reductions in benchmark ECB interest rates, such as the MRO.

Chart 9 (page 100 of the report) shows Ireland as an outlier to the rest of the Euro Area in terms of the "household loan-to-deposit spread".

So basically am I correct in seeing that banks here are making an extraordinary margin between what they give out in interest and what they take in?? And this is showing specifically for new business which we know are offered somewhat better rates than existing borrowers??

Admittedly without understanding all the factors involved here, I'm going with the word "gouging".

 

[Brendan Burgess]

The CB is unbelievable. In the Feb report published on Friday, they now quote the new business rate excluding trackers.

So it seems that every month, they switch, but they never say that they are doing so.

You have to delve into the data tables to find that this actually refers to new business(It's not in the table, but it's the title of the Excel tab)

Confusingly, they say later on