As we reported yesterday – it was expected by many economists – and today the ECB has just cut interest rates by a quarter of a percentage point to 0.75 per cent, a new record low.
This will be good news for people on tracker mortgages – and someone with a tracker mortgage of €200,000 should see monthly repayments fall by about €30 a month.
The drop should be passed on to mortgage rates before the end of August.
The ECB also cut the interest rate on its deposit facility to zero – which should help reduce general market interest rates and stimulate inter-bank lending.
The deposit rate is the rate the ECB pays banks for their overnight deposits at the central bank. Now that it is zero – the banks should have more incentive to lend to each other.