ECB leaves key lending rate unchanged
THE European Central Bank left its key lending rate unchanged today, in a move that was widely expected.
President of the ECB Mario Draghi is likely to point later this afternoon to a weak eurozone economy and may hint it needs more help.
With latest data showing joblessness at a record high in the euro zone, Mr Draghi said the long-term plan is to keep interest rates at historic lows.
And concerns about political tensions in Portugal are also an issue as the country’s prime minister tried to defuse a crisis that has seen ministers resign and which could derail the country’s efforts to emerge from an international bailout.
This means that a rate cut later in the year is a possibility which would benefit some 375,000 people here who have tracker mortgages.
Rates were cut in May to a record low of 0.5pc. Another cut may be needed if the struggling eurozone economy does not pick up, economists said.