AIB has joined the other leading banks by reducing its interest rates. Its standard variable mortgage rate is being reduced by 0.85 of a percentage point to 7 per cent, while most business lending rates fall by one points. Demand deposit rates have been cut by 0.5 of a point, bringing the basic rate on a balance of up to £100,000 to just 0.25 per cent, with higher rates available on notice deposit accounts.

Meanwhile ACCBank has also cuts its rates, reducing its standard home loan rate by 0.75 of a point to 7.2 per cent and cutting the rate on demand deposits of less than £5,000 to 0.25 per cent.