Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

ECB President Mario Draghi Michael Probst/AP/Press Association Images

Steady as she goes: ECB holds interest rate at record low of 0.25 per cent

Good news for those on tracker mortgages today as records remain at a record low.

THE EUROPEAN CENTRAL BANK (ECB) has kept its key interest rate at a record low of 0.25 percent, as widely expected, holding back for now on further moves to boost the struggling eurozone economy.

The decision follows the ECB’s surprise cut last month of the central “refi” refinancing rate by a quarter-point to counter the threat of deflation, a vicious cycle of falling prices and wages that is poison for the economy.

However, the danger of a plunge into a deflationary spiral appears to have diminished as the eurozone inflation rate nudged back up to 0.9 per cent in November after a sharp fall to 0.7 per cent in October.

“It was no surprise that the ECB chose to leave the refi rate at 0.25 percent today, but the bank remains under pressure to do more to support the eurozone’s fragile recovery,” said Ben May of Capital Economics.

ECB officials have stressed that the eurozone has seen “disinflation” — or slowing price rises — not “deflation”, where prices fall in real terms, encouraging consumers to put off purchases in hopes of further price drops.

Deflation can lead to a vicious cycle of falling prices and demand, and rising unemployment.

The bank’s central aim is to ensure price stability and keep the inflation rate close to but below 2.0 per cent.

- © AFP, 2013

All-time low: ECB cuts its main interest in boost to tracker mortgage holders

Author
View 27 comments
Close
27 Comments
    Install the app to use these features.
    Mute Kathriona Bannon
    Favourite Kathriona Bannon
    Report
    Dec 5th 2013, 2:13 PM

    Pity the ECB cant reduce the variable rate mine is 4.58% its a joke!!!

    59
    Install the app to use these features.
    Mute Big Pat
    Favourite Big Pat
    Report
    Dec 5th 2013, 2:44 PM

    You’re paying for other people’s trackers. Ouch.

    29
    Install the app to use these features.
    Mute Paul Doyle
    Favourite Paul Doyle
    Report
    Dec 5th 2013, 2:53 PM

    I love my tracker

    51
    See 5 more replies ▾
    Install the app to use these features.
    Mute Kevin Dobson
    Favourite Kevin Dobson
    Report
    Dec 5th 2013, 2:53 PM

    No. You’re paying for taking the risk of going with a variable rate mortgage. People with trackers are paying for themselves and being rewarded for making a good call. Or in my case, getting lucky. There’s no one subsidising us.

    47
    Install the app to use these features.
    Mute galway2007
    Favourite galway2007
    Report
    Dec 5th 2013, 3:01 PM

    i love my tracker also and the brits are paying for it as it is with ulster bank

    29
    Install the app to use these features.
    Mute sean t bugger
    Favourite sean t bugger
    Report
    Dec 5th 2013, 3:39 PM

    It is lucky. Amazing how one tick of a box costs you thousands extra a year. My mate who owes 50 k more then me pays less

    17
    Install the app to use these features.
    Mute sean t bugger
    Favourite sean t bugger
    Report
    Dec 5th 2013, 3:40 PM

    Thrn again both are rented out he pays tax and I dont have top so cancels it out for me :)

    4
    Install the app to use these features.
    Mute jgrcb
    Favourite jgrcb
    Report
    Dec 5th 2013, 5:43 PM

    Why don’t you pay tax?

    4
    Install the app to use these features.
    Mute CAPITAINE ADEBAYO
    Favourite CAPITAINE ADEBAYO
    Report
    Dec 5th 2013, 1:58 PM

    Dear Santa, its Adebayo. I dont want that BMX anymore, just a little clerical manoeuvre and switch me to a tracker mortgage. Cheers.

    Ps sorry about sexting your missus.

    47
    Install the app to use these features.
    Mute Ricky Spanish
    Favourite Ricky Spanish
    Report
    Dec 5th 2013, 2:02 PM

    C’mon Draghi.

    Drop it to zero!!

    31
    Install the app to use these features.
    Mute Tony Skillington
    Favourite Tony Skillington
    Report
    Dec 5th 2013, 2:05 PM

    All the one Ricky.. If you’re on a variable the banks ain’t gonna give the reduction to ya..end of!

    13
    Install the app to use these features.
    Mute Kevin Dobson
    Favourite Kevin Dobson
    Report
    Dec 5th 2013, 2:42 PM

    Just one more time: ICS. Thanks once again for refusing to give me a variable rate and making me take a tracker. How did that work out for ya? :)

    30
    Install the app to use these features.
    Mute Coddler O Toole
    Favourite Coddler O Toole
    Report
    Dec 5th 2013, 2:57 PM

    As the 2 year blanket bank guarantee was close to expiring during the summer of 2010, the ECB forced the Irish government into full repayment of all bank bondholders from senior secured right down to junior unsecured under threat of withdrawal of liquidity funding from the Irish banks. The ECB utterly exceeded its mandate in this and a legal case needs to be taken to the European Court of Justice in relation to this blackmail of a sovereign state. The ECB can make amends to Ireland by reimbursing us to the value of the illegitimate debt and interest it imposed on us and penalties to account for the damage done to the domestic economy in servicing odious and illegitimate debt. Let’s call it an even €100 billion.

    18
    Install the app to use these features.
    Mute CAPITAINE ADEBAYO
    Favourite CAPITAINE ADEBAYO
    Report
    Dec 5th 2013, 2:00 PM

    Dear Santa, I dont want that BMX anymore. Can you please do some clerical manoeuvring and hook me up with one of these trackers.

    Ps sorry about sending those pics to your Missus. It was inappropriate.

    15
    Install the app to use these features.
    Mute CAPITAINE ADEBAYO
    Favourite CAPITAINE ADEBAYO
    Report
    Dec 5th 2013, 2:02 PM

    SOZ! First sh1t joke didnt post for a minute.

    18
    Install the app to use these features.
    Mute Tony Skillington
    Favourite Tony Skillington
    Report
    Dec 5th 2013, 2:04 PM

    You’re Ade…time was you’d hit that punch line line a train.. :)

    11
    See 1 more reply ▾
    Install the app to use these features.
    Mute Capitaine Adebayo Flynn
    Favourite Capitaine Adebayo Flynn
    Report
    Dec 5th 2013, 2:07 PM

    Ha! Cheers Tony!

    9
    Install the app to use these features.
    Mute robert purfield
    Favourite robert purfield
    Report
    Dec 5th 2013, 4:40 PM

    I also love my tracker but its a case of swings and roundabouts whos to say in 10 or 12 years time those of us on trackers wont be paying more than people on standard varibles are at the moment?? Its actually something to worry about as the Germans will want return on their investments at some stage and people are actually struggling to pay trackers with the rate so low itd be a disaster for many if it went massively again

    8
    Install the app to use these features.
    Mute jgrcb
    Favourite jgrcb
    Report
    Dec 5th 2013, 5:47 PM

    Variables will never be higher than trackers. The irish bank borrow their money from the European central bank don’t forget…

    4
    Install the app to use these features.
    Mute Sheik Yahbouti
    Favourite Sheik Yahbouti
    Report
    Dec 5th 2013, 3:10 PM

    ‘Super Mario’ me hole, stop being so lazy journal.

    6
    Install the app to use these features.
    Mute chateau nove de pope
    Favourite chateau nove de pope
    Report
    Dec 5th 2013, 4:29 PM

    I don’t know what a tracker mortgage is ………..

    4
    Install the app to use these features.
    Mute chateau nove de pope
    Favourite chateau nove de pope
    Report
    Dec 5th 2013, 4:30 PM

    ⬆️like the ad , anybody ??

    4
    Install the app to use these features.
    Mute jgrcb
    Favourite jgrcb
    Report
    Dec 5th 2013, 5:44 PM

    Shut up please :-)

    6
    Install the app to use these features.
    Mute Jim Flavin
    Favourite Jim Flavin
    Report
    Dec 5th 2013, 4:54 PM

    low interest rates are not always good news – those trying to save or who have savings get f — all .- – so there is no incentive to do so – and what we are seeing in US and UK now are new bubbles – its as if 2008 never happened
    As for their inflation figures – these are calculated different in various countries – but many leave out items eg Fuel etc – and the real inflation figures are much higher .
    think thing that the ECB give a d##n about the average citizen is living in cloud cuckoo land – they keep it low so banks get money for near zero – to gamble with – so it encourages more casino banking .

    3
    Install the app to use these features.
    Mute Damien Halpin
    Favourite Damien Halpin
    Report
    Dec 5th 2013, 9:16 PM

    THE TRACKER MORTGAGE HOLDERS NEED TO DO THERE PATRIOTIC DUTY AND ALLOW THE GOVERNMENT TO BREAK THERE CONTRACT..
    TRACKER MORTGAGE HOLDERS YOU SHOULD PUT YOUR HEADS DOWN IN SHAME!!!!!!
    HAVE YOU ANY GUILT. DO YOU WANT TO GO DOWN IN HISTORY AND BE LUMPED IN WITH THE LIKES OF STALIN AND HITLER AND JOSEF FRITZL…

    1
    Install the app to use these features.
    Mute Bryan Smyth
    Favourite Bryan Smyth
    Report
    Dec 5th 2013, 9:29 PM

    Call an ambulance, or a shrink for that nut..

    8
    Install the app to use these features.
    Mute Damien Halpin
    Favourite Damien Halpin
    Report
    Dec 5th 2013, 9:36 PM

    TRACKER MORTGAGE HOLDERS SPOTTED LAST NIGHT IN DUBLIN THROWING BABIES OFF CLIFFS NEAR DALKEY. THE EVIL BASTARDS..

    1
Submit a report
Please help us understand how this comment violates our community guidelines.
Thank you for the feedback
Your feedback has been sent to our team for review.
JournalTv
News in 60 seconds