Central Bank doesn't want power to cap mortgage rates, says Noonan
Finance Minister Michael Noonan has said that a Fianna Fáil Bill on mortgage interest rates is unconstitutional and seriously flawed.
The Bill proposes to give the Central Bank powers to cap the amount lenders can charge for standard variable mortgages.
Michael Noonan said that he will propose hat the Bill be sent for further scrutiny when it comes up in the Dáil later today.
Minister Noonan believes there are a number of problems with it.
"The Governor of the Central Bank said he doesn't want these powers, and the way the legislation is drafted, the power leaves it at the discretion of the Central Bank to use them," he said.
"If you have a Central Bank that doesn't want the power and it's not mandatory that they should use the power, it seems to me it is destined to be a very ineffective piece of legislation."
