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No rate cut on cards at ECB talks

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ECB president Mario Draghi. Photo: Reuters

ECB president Mario Draghi. Photo: Reuters

ECB president Mario Draghi. Photo: Reuters

MORTGAGE holders are likely to be disappointed again when the European Central Bank (ECB) meets today because a cut in the key eurozone rate is not on the cards.

ECB president Mario Draghi is not expected to announce any changes in interest rates, which are currently on hold at the historically low level of 1pc.

KBC Bank chief economist Austin Hughes said that he did not expect any cut in rates today and that there was only an outside chance of a reduction by mid-year.

He added that there was even a chance that rates could rise as the German members of the ECB were getting worried about inflationary threats after the flooding of the eurozone area with funding earlier this year.

Meanwhile, it emerged yesterday that AIB now requires those borrowing more than €400,000 for a mortgage to have a larger deposit.

Up until now, the bank would give a mortgage of this size or more if the borrower had a deposit of up to 8pc of the property's value.

But it now wants a deposit of at least 15pc.

Irish Independent