Further rate cut being considered by the ECB

Further rate cut being considered by the ECB

The European Central Bank’s governing council are said to be considering a further interest rate cuts of a quarter a percentage point.

The benchmark rate, which has a direct impact for those on tracker mortgages, currently stands at a record low of 0.5% but the ECB are now thought to be split on reducing this to 0.25% as evidence mounts that the Eurozone economy is on the mend.

Were they to make a further cut around 400,000 tracker mortgage holders would benefit from monthly savings of €15 for every €100,000 borrowed.

Whether the rate cut comes or not, Bank of Austria governor Ewald Nowotny says there “is no plan for a rate increase soon” meaning those on tracker mortgages will continue to benefit from the current low rates for some time to come.

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