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Hope of rate cut for homebuyers

HOMEOWNERS may be in for another reprieve as economists anticipate the European Central Bank to cut interest rates to a new record low next week.

The ECB is expected to introduce more emergency measures to calm international markets.

Householders with a tracker mortgage could see rates drop to 0.75pc from 1pc.

Economists had earlier predicted that the ECB would hold rates steady for the foreseeable future, but the data suggests that the euro economy is on a nosedive which would bring a sudden change of consensus.

A total of 48 out of 71 analysts interviewed now expect the ECB will trim interest rates next Thursday, with most of them predicting a cut to 0.75pc, where they will stay until 2014 at least.

A further 21 out of 55 economists thought European leaders will emerge with an outline for both a banking and fiscal union, while 17 thought only a plan for a banking union would result.