Bank of Ireland has told Minister for Finance Michael Noonan its focus will be on guiding customers into switching to its lower fixed-term rates.

The Irish Times has learned the bank is not planning to lower its standard variable rate before July 1st, the deadline set by the minister for action. Its SVRs range from 3.9 per cent to 4.5 per cent depending on the loan-to-value ratio. Its fixed rates range from 3.8 per cent upwards.

In a statement, Bank of Ireland said its meeting with the Minister on Thursday was “constructive and professional” and that it advised Mr Noonan that its “focus” was on its fixed-rate offerings.

“The bank outlined its strategy and focus on fixed-rate offerings which mitigate interest rate risk for customers and the bank, the availability of the bank’s current fixed rate offers to all Irish SVR customers, and the savings to the bank’s Irish SVR customers from the current fixed rate offers,” it said.

AIB is implementing its second SVR rate cut in six months, which will reduce its headline rate to 3.9 per cent from 4.15 per cent.

“Our second recently announced cut to mortgage interest rates will come in to full effect for new and existing customers from June 2nd,” a spokesman said.

The cuts announced over the past six months benefit about 158,000 existing customers of AIB, EBS and Haven with savings of about €660 a year on a €200,000 mortgage.

Ulster Bank launched an information campaign in the past week to promote its cheaper fixed-rate products to SVR customers. The campaign, costing a six-figure sum, includes TV, outdoor and social media.

Permanent TSB declined to comment on its intentions. KBC described its meeting with the Minister as "positive and constructive" but had no comment to make on its plans.