Ireland's financial institutions cut their mortgage costs in response to the European Central Bank's reduction of its key interest rates today.
AIB and the First Active said their variable home loan rates would go down 0.5 per cent to 4.25 per cent and 4.75 per cent respectively, from the start of next week.
The drops matched the half a percentage point cut announced earlier by the ECB, and will represent a saving for borrowers of around £14 on monthly payments for a £50,000 mortgage.
Today the Tánaiste and Minster for Enterprise, Trade and Employment Ms Harney, signalled disagreement with yesterday’s contention by Mr Maurice O’Connell, the governor of the Central Bank that the days of the Celtic Tiger were over.
She said "Clearly we are not growing at the rate we were, but remain in a very healthy position, with the best-performing economy in Europe.
"It is very important that we recognise that the fundamentals of our economy are sound.
"Confidence is a very precious ingredient and we have to ensure we do not talk ourselves into difficulties we do not have."
She added "The economic stability of Ireland is not in jeopardy as it was in the past. We have a very good budgetary situation."
PA