Expectations are high for an ECB rate cut possibly in June, accelerated by a recent surprise cut by the Swiss Central Bank. This could lead online account rates, closely tied to the ECB's rate, to drop accordingly.
Banks may not immediately reduce deposit rates following an ECB cut but might do so by year-end after multiple cuts.
Markets anticipate up to four ECB rate cuts this year, potentially lowering deposit rates to 3.25% or 3%, affecting Irish banks' profits. And based on market intel, we feel that they will ultimately move them down.
For those with surplus funds, acting quickly to secure current higher rates on term deposits is strongly advisable.