Further cut in ECB rates expected next week

A further cut in European Central Bank rates has been predicted for Thursday week in what would be a huge boost to tracker mortgage holders.

A sharp fall in interest rates that banks charge each other and weak economic data in Germany means the ECB is likely to cut rates to just 0.5% - a move that would benefit the country’s 400,000 tracker mortgage holders.

Those on variable mortgage rates will have to wait and see whether their banks pass on any new rate cut although it could be unlikely given that both Bank of Ireland and AIB have announced increases to their variable rates this summer.