Bank of Ireland and Bank of Scotland have cut home loan interest rates, following the European Central Bank rate cut of May 10th. Northern Rock is also cutting deposit rates for its range of deposit accounts and the Government special savings incentive scheme.

The standard variable rate for Bank of Ireland home loans will fall from 6.10 per cent to 5.85 per cent from close of business today. Bank of Scotland's new variable rate is 5.39 per cent, down from 5.59 per cent.

Northern Rock's Direct Saver Government savings scheme account is available from today at 4.5 per cent gross per annum for customers paying £200 per month.