Great news again for mortgage holders: The ECB (European Central Bank) has cut interest rates to a new low of 1.5%. This means an average reduction of about €80 a month on a €300,000 mortgage. Also in a similar move in London, the Bank of England has cut its rates to an all-time low of 0.5%.
The European Central Bank has cut its main lending rate to 2%, down from 2.5%.
The cut, in line with consensus forecasts, marks the fourth cut in just over three months amid signs that the financial crisis is biting hard into the eurozone economy and as inflation falls further below the ECB's 2%.
The majority of economists had expected the ECB to take another 0.5 points from its key rates, although the level of uncertainty around the decision was unusually high.