ECB will cut rates again, economists predict
SOME economists are already predicting that the European Central Bank (ECB) will cut its key rate for the second time in three months.
Japanese bank Nomura and French investment giant BNP Paribas both say they expect the ECB to cut all key interest rates by another 0.10pc by the October meeting at the latest, but add that a rate cut is more likely at this week's meeting.
However, other economists dismissed as unlikely the prospect of a new rate cut, with ECB rates at a record low 0.15pc.
The ECB cut interest rates in June. This saw around 375,000 tracker mortgage holders here paying less. A family with a €200,000 mortgage saw their repayments fall by €10 a month, which works out at €125 over a year.
Yesterday, Bank of Ireland launched a 10-year fixed-rate mortgage at 4.99pc. This is slightly ahead of the average variable rate of 4.5pc.
The new 10-year rate is available to new and existing customers of the bank.
Michael Dowling of the Independent Mortgage Advisers Federation said the new rate was good value.
But Irish people can be reluctant to fix their mortgages, because it is expensive to break out of a fixed-rate deal.