ECB rate cut by .25% to 1%

[Conor]

Just heard there, the ECB has cut by .25% to 1%. Good news for tracker mortgages.

I'm guessing that's the last time they'll cut rates, unless something really freaky comes up. The press conference should be interesting - I'd be particularly interested if he alludes to "quantitative easing" in the near future.

[ibis]

Just heard there, the ECB has cut by .25% to 1%. Good news for tracker mortgages.

I'm guessing that's the last time they'll cut rates, unless something really freaky comes up. The press conference should be interesting - I'd be particularly interested if he alludes to "quantitative easing" in the near future.

Hold on - I thought we were facing "unacceptably high interest rates from Europe"?

[FutureTaoiseach]

We need them to devalue the euro to boost exports. Inflation is not a danger at this time.

[Factorem]

Just heard there, the ECB has cut by .25% to 1%. Good news for tracker mortgages.

I'm guessing that's the last time they'll cut rates, unless something really freaky comes up. The press conference should be interesting - I'd be particularly interested if he alludes to "quantitative easing" in the near future.

Not really, cos there's a floor on the interest rate of a mortgage.

[athlonedub]

Not on my tracker there isn't !! The one economic pleasure in recent months has been the regular letter telling me my repayments have dropped - much appreciated too !

[bobbysands81]

That is obviously good news for those of us on tracker mortgages (unfortunately I'm not!) who will all get the cut automatically.

However, the following banks have also announced that they are passing on the cut in their standard variable owner occupier mortgages:

Irish Life and Permanent
KBC Bank
Bank of Ireland and its subsidiary ICS.

I'm with AIB who haven't made an announcement on it yet.

Most people in Ireland are quids in over the last year or so with huge reductions in their monthly mortgage repayments.

How screwed is this country going to be (given our current predicament) if Europe comes out of this recession much quicker than Ireland does? If that happens, and there's a need to dampen down Inflation by Europe by increasing interest rates, then the crap will really hit the fan and repossessions will go through the roof.

The last thing Ireland now needs is higher interest rates meaning more income which will result in even less money being spread throughout our economy.

[bobbysands81]

Ulster Bank and First Active said they will not pass on the reduction to varible rate mortgage holders.

[constitutionus]

Not really, cos there's a floor on the interest rate of a mortgage.

yup.

check that small print people. i dont have one but i heard about limits under 1.25% being on some trackers.

this generally used to be a good thing but TBH thanks to the abolition of mortgage interest relief by the end of this year im back to where i was before the whole thing started, effectively meaning im paying what i was at 7% with the sure and certain knowledge that someday theyll get back there again too.

being with first active on a variable i never even got the last on so i dont expect this oneto be passed on either

[expat girl]

wayhey, I love my ICS tracker.....wish they'd do something about my negative equity though ;0(

[Victor Meldrew]

wayhey, I love my ICS tracker.....wish they'd do something about my negative equity though ;0(

I hear you and share your pain....

We need a nice dose of quantitative easing and wage inflation for that to happen though.....