Mortgage rate cut on cards as shares dive

Jan 23, 2008

ECB under pressure to give homeowners an April boost
Homeowners are poised to benefit from the first cuts in interest rates for four-and-a-half years, as a direct result of global stock market turmoil.

The European Central Bank (ECB) is expected to begin cutting rates as soon as April, following the dramatic 0.75pc slash in US rates yesterday.

This helped the Irish stock market rebound yesterday, as it added 3.7pc to its value. But the markets meltdown of the past three weeks has wiped €10bn off the value of Irish pension funds.

The vast majority of leading Irish economists surveyed by the Irish Independent last night predicted rates would fall by 0.50pc by the end of the year.

This would shave €90 off the average monthly mortgage and provide a boost for the flagging property market, which has seen average house prices plummet by up to 10pc over the past year.

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