ECB cuts rates for seventh time with more reductions expected

The European Central Bank (ECB) cut rates by 0.25 percentage points, marking its seventh reduction since June 2022, bringing the rate down to 2.40%. This decision directly benefits about 130,000 tracker mortgage holders, but could penalize savers as savings rates are likely to decline. While this move helps those linked to ECB rates, most Irish mortgage holders remain on fixed or variable rates, making them less affected. Analysts predict further cuts, dependent on various economic factors, particularly Trump's tariff policies, but inflation's potential rise could complicate future reductions.

"While this would be welcomed by most mortgage holders, it also means savings and deposit rates are likely to fall further."

"But the vast majority of Irish mortgage holders are on fixed or variable rates not tied to ECB movements, so any changes in those rates will depend on decisions by individual lenders."

Read at Irish Independent