NoRegretsCoyote
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I seem to recall the unusual (?) rate smoothing/capping technique used in France being discussed here on AAM several years back alright.AFAIK in France new loans are capped to the rate charged on the existing stock to some extent.
It looks like the French system is going to be changed according to this as a lot of lending isn't viable given the hike in market rates.I seem to recall the unusual (?) rate smoothing/capping technique used in France being discussed here on AAM several years back alright.
It seems Irish banks are more funded by deposits than European banks (or indeed non-bank lenders in Ireland).What's changed?
I know the graph is lagging slightly, but Ireland showing no increase despite all the providers increasing rates over the last number of months feels wrong. It just says the CBI is reporting the data and the latest I can find there is from September and that does show an increase.Irish mortgage rates are now among the lowest in Europe.
Mortgage rates in Ireland (2.53%) October now well below the euro area average of 2.83%.
Only Malta, Luxembourg, and France are now below Ireland. See here. Of the big countries: Spain (3.16%), Germany (3.23%), Italy (3.21%)
One thing to note is the CBI data only covers banks. So would exclude the rate increases from the likes of Avant and ICS. I think AIB were the first of the banks to increase rate and that only happened in October. Even then the higher rates weren't effective until November.I know the graph is lagging slightly, but Ireland showing no increase despite all the providers increasing rates over the last number of months feels wrong. It just says the CBI is reporting the data and the latest I can find there is from September and that does show an increase.
It's for one to five year fixed rates, new business.It just says the CBI is reporting the data and the latest I can find there is from September and that does show an increase.
BoI, AIB and PTSB have definitely been cautious in passing on rate increases to their non tracker customers so far, which is what we are seeing in this data.
Does anyone have a clear sense of what driving the 'pillar banks' hesitancy in increasing both their fixed and variable rates?
It's a good thing, but I'm not really sure what is really going on and would be interested if anyone had any theories. My suspicion is that the lack of increases is temporary, but maybe I'm missing something?
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