MINISTER FOR FINANCE Michael McGrath has said that he expects and anticipates an imminent move by Irish banks to boost bank deposit rates.

Speaking during the opening of a new hospital development in Cork, Minister McGrath said that members of the public are “absolutely entitled” to make financial decisions in their own best interests.

This follows comments made by Minister for Public Expenditure Paschal Donohoe last week that it wasn’t “unpatriotic” for savers in Ireland to put their savings in other European bank accounts if they can get a better deal there.

However, Minister McGrath said that he believes Irish savers will soon receive positive news on bank deposit rates.

“I do anticipate that we will see increases in the weeks ahead in the rates of interest being paid by banks on certain savings and deposit accounts.”

“I think the market conditions are such that such increases are justified, they are commercial decisions for the banks but I certainly expect and anticipate that we will see improvements in the rates being paid over the weeks ahead.”

“While the banks have not fully passed on the increases in interest rates to mortgage holders, they have passed on even less of the increase in the ECB interest rate to savers and depositors.”

“I do think that mismatch will now be addressed. We will see progress on that over the coming weeks.”

Mr McGrath also said that he has had discussions with the NTMA who are responsible for various State saving products.

“I know that they intend to bring a proposal to their own board next week which will then make its way ultimately to me for sanction – that will involve an improvement in the rates of return being paid on some of the State savings products being offered by the NTMA. I do think we will see progress in the future in the coming weeks on both of those fronts.”

Irish banks offer their saving customers among the lowest interest rates in Europe whilst European rates can be multiples of those available to savers in Ireland.