Another ECB rate cut could be on the way

Another ECB rate cut could be on the way

Another ECB rate cut could be on the cards after a set of figures showed inflation falling to a record low.

The governors of the Central Banks of the 18 member countries will meet tomorrow, with another interest rate cut likely to dominate the agenda.

An immediate reduction is not expected but they could signal a lowering of the rate in the coming months.

In November, the European Central Bank cut its interest rate by a quarter of a percentage point to 0.25%. Around 375,000 tracker mortgage holders benefitted from that cut, which resulted in a saving of around €15 a month per €100,000 borrowed.

If a rate cut is proposed it is likely to fall to 0.10%, which would see repayments on €100,000 of a typical tracker mortgage fall by around €7 per month.

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