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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.
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Pity the ECB cant reduce the variable rate mine is 4.58% its a joke!!!
You’re paying for other people’s trackers. Ouch.
I love my tracker
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.
i love my tracker also and the brits are paying for it as it is with ulster bank
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
Thrn again both are rented out he pays tax and I dont have top so cancels it out for me :)
Why don’t you pay tax?
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.
C’mon Draghi.
Drop it to zero!!
All the one Ricky.. If you’re on a variable the banks ain’t gonna give the reduction to ya..end of!
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? :)
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.
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.
SOZ! First sh1t joke didnt post for a minute.
You’re Ade…time was you’d hit that punch line line a train.. :)
Ha! Cheers Tony!
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
Variables will never be higher than trackers. The irish bank borrow their money from the European central bank don’t forget…
‘Super Mario’ me hole, stop being so lazy journal.
I don’t know what a tracker mortgage is ………..
⬆️like the ad , anybody ??
Shut up please :-)
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 .
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…
Call an ambulance, or a shrink for that nut..
TRACKER MORTGAGE HOLDERS SPOTTED LAST NIGHT IN DUBLIN THROWING BABIES OFF CLIFFS NEAR DALKEY. THE EVIL BASTARDS..
have your say