As expected, the European Central Bank has decided to maintain its main interest rate at 1%, meaning mortgage holders will have to wait at least another month for further cuts.
The ECB cut interest rates by 0.25% in both November and December and a third successive month of cuts had been predicted for January prior to the Christmas break.
However, speculation in recent days suggested that the ECB would hold off on a further round of cuts this month and that prediction has proven true following their meeting today.
The bank’s governing council met in Frankfurt today where it was decided, as was widely expected, that the main interest rate would remain at 1%.
President Mario Draghi had imposed two successive cuts in his first weeks in the role. Earlier this morning, the Bank of England also kept its main interest rate unchanged at 0.5 per cent.
Each cut of 0.25% saves tracker mortgage holders – who automatically benefit from the cuts - €30 a month for each €200,000 borrowed.
A further rate cut is expected in either February or March and it has been predicted that the rate will hit an historic low of 0.5% in the middle of the year.
