Good News for tracker mortgage holders 

Source: RTE News

Beattie real estate assumes no responsibility or liability for any errors or omissions in the content of this information . The information contained in this page is provided on an "as is" basis with no guarantees of completeness, accuracy, usefulness or timeliness...

The European Central Bank cut interest rates again today as euro zone inflation slows and economic growth falters, but provided no substantial clues to its next step, even as investors bet on steady policy easing in the months ahead.

The ECB lowered its deposit rate by 25 basis points to 3.5% in a widely expected move, following up on a similar cut in June as inflation is now within striking distance of its 2% target and the domestic economy is skirting a recession.

The next question is who will benefit? When? and by how much?

Tracker mortgage holders will immediately receive a cut from the interest rate decision.

On this occasion, there will be a double benefit for those customers.

The ECB earlier this year had flagged that it would make a technical adjustment of 0.35% to rates which banks use to price tracker loans.

It means those customers will get a 0.6% reduction which would be worth €33 per month for every €100,000 borrowed.

The ECB says it has not committed to further rate cuts.

But many economists believe another reduction is possible in December.