ECB cuts rates for the fourth time since June, with further cuts on the horizon

The European Central Bank (ECB) today announced a cut to its key interest rates by a quarter of a percentage point, which is the fourth cut since June.

Predicting that inflation will be back at its 2% target in early 2025, and that growth will remain sluggish, the ECB lowered its deposit rate from 3.25% to 3%, as expected.

The ECB also kept the door open for further cuts as inflation continues to cool. "The disinflation process is well on track," said ECB President Christine Lagarde at a press conference. "In 2025 we shall be at 2%."

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Prior to today's announcement, there was speculation that a rate cut of .50 percent was on the cards. Largarde acknowledged "there were some discussions" about cutting by 50 basis points but said the consensus had been for a 25-basis-point move.

The cut is great news for tracker mortgage holders, who will see their monthly repayments fall again. However savers have been warned that they are set to lose out as more deposit takers are likely to reduce the interest they pay for money saved in bank accounts.

Its hoped this latest cut will also put pressure on banks to continue to cut their rates for new fixed and variable mortgages.

Yesterday, it was revealed that mortgage rates in Ireland have reached the lowest point in almost a year and a half at 4.03%.

This is down from 4.27% for the same time last year, and leaves Ireland with the sixth highest mortgage rates in the Eurozone - who have an average rate of 3.52%.

The Central Bank figures for Ireland show the average variable rate was 4.39%, while the average fixed rate stood at 3.89%.