Taoiseach Enda Kenny has insisted the government cannot intervene in mortgage rate increases.
His comments came in the wake of AIB’s two interest-rate hikes in two months.
Amid opposition claims that the government is abandoning struggling homeowners, Mr Kenny said it is necessary for the bailed-out bank to return to profitability.
AIB announced its standard variable mortgage rate will increase by 0.5% to 4% from November 13th. Some 70,000 homeowners are expected to be hit with the rise, which will see repayments on a €200,000 variable rate mortgage shoot up by €120 a month.
The Taoiseach said the government has made it clear in the past that it cannot advise banks on the rates they set.
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