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.
Will the Euro break parity with Sterling anytime soon. As you can see from the screenshot from xe.com/ucc that 1 Euro is currently worth 92p sterling. At this rate it might even break parity before the end of the year!
While all the doomsayers are saying that this is bad for the economy blah blah blah etc, I think its great and am off to buy some stuff on Amazon.co.uk
Thank you God for my tracker mortgage!
Some great news for mortgage holders today, the European Central Bank (ECB) has cuts its rates by 0.5% to 3.25%. This comes less than 1 month after the last rate cut, also of 0.5% on the 8th October and brings interest rates to their lowest level for two years. But what came as a big shock from the Bank of England was their announcement that they were slashing rates by 1.5% to 3.25%. This brings interest rates in the UK below those in the Eurozone and the lowest level in the UK since 1955.
Either way its welcome news to mortgage holders, except those on fixed rate loans