ECB cut on the cards today (2/4/09)

[Ciaraella]

Heard on the news the ECB is expected to be cut today by half a percent. As i'm on a tracker mortgage i'm thrilled. I did think though that after the March cut the next was meant to be June?

 

[Mr DT]

Its an emergency cut given the massive problems with the European/World economy and it co insides with the G20 meeting taking place.

If you lifestyle and job is not likely to be effective by this downturn, then indeed its a positive thing. However, its also a sign of how bad its going to get.

 

[NewUser1]

Is is @ 1% or 1.5% at the moment without any further cut today being taken into account?

 

[z109]

Currently 1.5%

 

[Sunny]

Only cut by 25bps

 

[sandrat]

so now 1.25%

 

[jhegarty]

I'll still take it

 

[sandrat]

me too, means my rate is now 2.5% mortgage will be down 300 euro a month since these cuts started

 

[Holtend82]

€300 a month is fantastic, could not come at a better time too.

 

[Luckycharm]

Good news I am sure after the upcoming budget I will be giving it all back!

 

[Westy29]

Maybe the experts on here can give their opinion on this. Reading a bit lately about all the money the US is throwing at their economy and the possibility of the ECB following suit. Is this likely to drive inflation through the roof and hence interest rates

 

[DerKaiser]

Maybe the experts on here can give their opinion on this. Reading a bit lately about all the money the US is throwing at their economy and the possibility of the ECB following suit. Is this likely to drive inflation through the roof and hence interest rates

only if they over egg it

 

[jules312]

hi can anyone explain if the ecb rate is 1.25 how come the papers are quoting rates of 3 and 4% variable
also in relation to halifax are they paying the fees if you change to them
thanks j

 

[Senna]

Halifax are paying the fees (possibly up to a €1000 limit), if your LTV is low and you current rate is rubbish then it can be a great move.

The ECB rate is a rate that the European central bank lends at. Most banks get there money on the Euribor market (bank to bank lending) and this rate is normally higher than the ECB. But whatever rate they get their money at, the customer will pay more. I think AIB's stan var is ECB+1.25%, this 1.25% (close to it) is the way the banks make money, its there commission on the money.
Thats why they dont want people on trackers as the usual rate is ecb+1% or less, meaning they make less money or possibly none.