Interest rates are expected to be cut by 0.25% by the European Central Bank today.
If a reduction is announced it would immediately benefit tracker mortgage customers.
The cut will reduce rates from 3.25% to 3% in the eurozone.
It would be the bank’s fourth decrease so far this year.
The move is in response to moderating inflation across the countries that use the euro.
There have also been concerns about European growth rates.
While a cut in rates benefits borrowers it will result in lower returns for savers.
For a tracker mortgage customer with 15 years left on their loan the reduction will mean a €13 monthly reduction in payments for every €100,000 borrowed.
Average new mortgage rates in Ireland are currently 4.03%, which is the sixth highest in the eurozone according to the Central Bank.
Darragh Cassidy, head of communications with Bonkers.ie, said “we are seeing average rates fall, most of the reduction is in fixed rates where there is most competition”.
On savings rates he said people with deposits will be the losers on falling rates and advised consumers to “lock into a half descent rate while you can”.
Last week, 73 of 75 economists polled by Reuters predicted the ECB would cut rates by 0.25% while two thought the reduction would the cut would be 0.5%.
The markets have become increasingly concerned about the impact of the return of Donald Trump to the White House and the potential impact on the eurozone economy.
“We downgraded our growth forecast materially for 2025, as a result of the Trump tariffs. We don’t think Trump is very sympathetic to the EU and will not hold back,” said James Rossiter, head of global macro strategy at TD Securities.
He added: “If you look at the geopolitical risks around the coming year with France, Germany, Trump, all these things really skew to the downside.”
Article Source – ECB set to cut interest rates for fourth time this year – RTE