Further cut in interest rates expected next month

Further cut in interest rates expected next month

A further cut in interest rates is expected to be announced by the ECB next month

The summer may be over but autumn might just be about to bring some good news for tracker mortgage holders with another cut in interest rates predicted.

It is anticipated that next month the European Central Bank will drop their interest rates by a further 0.25% – their fourth cut in under a year – leaving rates at an historically low 0.5%.

Those with tracker mortgages would automatically benefit from any further rate cut in interest rates with the average mortgage holder saving around €15 a month for every €100,000 borrowed.

It is unlikely that many of the banks will pass on the impending cut to their variable rate customers, however, with AIB actually increasing rates last month despite the ECB’s bid to free up money for spending in the wider European community.

The ECB meets on Thursday but it is expected that they will hold off on their next rate cut until September.

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