ECB cuts interest to all-time low
The European Central Bank has confirmed it is cutting its key interest rate to a new historic low of 0.15%.
The bank, worried that the cost of living is rising slower than expected, made the announcement at its monthly meeting in Frankfurt today
They took the measure to raise the supply of money in the economy, and it also means good news for around 400,000 people with tracker mortgages who will pay around €8 less in their the monthly repayments for every €100,000 on a 30-year loan.
However, the cut spells bad news for households on variable interest rates, with banks poised to increase rates to make up for the losses on tracker mortgages.
