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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

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    Mute Paul Heffernan
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    Aug 26th 2013, 10:20 AM

    Mains pipes in Limerick must be in a bad way. I work on the Ballysimon Road in Limerick and the amount of times the mains pipe on this road has burst is nuts.

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    Mute Antonov Merinov
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    Aug 26th 2013, 10:35 AM

    By the looks of that pipe I bet the Romans had a better water supply.

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    Mute Goebong
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    Aug 26th 2013, 10:37 AM

    Well done limerick country council great work getting the water supply back on do quick

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    Mute Carcu Sidub
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    Aug 26th 2013, 12:21 PM

    Goebong.

    Am I reading your comment correct?

    Are you congragulating Limerick CITY council for actually doing the job they are being paid to do?

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    Mute Goebong
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    Aug 26th 2013, 1:51 PM

    Yes they done a great job water back on within hours great job people could have had no water all day

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    Mute Carcu Sidub
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    Aug 26th 2013, 2:06 PM

    Goebung

    Thanks for confirming that we need to congragulate council workers for actually working.

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    Mute Goebong
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    Aug 26th 2013, 2:27 PM

    So what do want to give out to them for doing a good job stop being so negative

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    Mute Carcu Sidub
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    Aug 26th 2013, 3:40 PM

    Goebung

    Dont worry this time next year when their all transfered to Irish Water they will be too busy fixing water meters to have time to fix leaks, then you’ll be giving out.

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    Mute Donal O Neil
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    Aug 26th 2013, 3:48 PM

    It probably was a roman made pipe from roman times

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    Mute Robert Kelly
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    Aug 26th 2013, 12:10 PM

    Is that a stock photo of some pipe that leaked or a photo of water pipes typical of Limerick?

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    Mute Carcu Sidub
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    Aug 26th 2013, 12:23 PM

    Robert

    That is a stock photo. Howeveer it could also be a photo of typical water pipes anywhere in the country. Some water pipes have been repaired so often the councils would have paid 10 times less to actually replace them altogether.

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    Mute Bluemist
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    Aug 26th 2013, 10:37 AM

    That’s the council “engineers” for you

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    Mute Larry T Bird
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    Aug 26th 2013, 1:16 PM

    The pipe wil need to be fixed and stay fixed, as all the wh0res will need their weekly wash after the weekend

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    Mute Donal O'Byrne
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    Aug 26th 2013, 7:51 PM

    I guess the customers don’t wash at all?

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    Mute Ash
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    Aug 26th 2013, 1:52 PM

    Bit of plumbers mate… She’ll be grand….!

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    Mute Donncha Burke
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    Aug 26th 2013, 12:36 PM

    Do they use wooden pipes as in pic?

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    Mute Catherine Sims
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    Aug 26th 2013, 12:49 PM

    Pipes my side spear to burst a lot as well as the water is often off for repairs.

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