ECB cuts Interest Rate to 1.25%

The European Central Bank announced another 0.25% cut in interest rates today – bringing the rate down to just 1.25%.  This is the lowest ever ECB rate . Tracker mortgages will automatically be reduced in the next few weeks – but it is less likely that borrowers on variable rates will see the full benefit of this latest drop in rates.
Many commentators and “experts” expected a drop to 1% .
The rates has dropped by 3% from 4.25% since October 2008