Rate cut by European Central Bank overdue

THE European Central Bank will meet tomorrow to assess eurozone interest rates. And it’s broadly expected that the ECB will leave their overnight refinancing rate — the rate at which they lend cash to commercial banks — unchanged at 2%, because inflation in the eurozone is currently running above target.

So variable mortgage holders can’t expect any good news from Frankfurt tomorrow.

Yet, this monthly ECB meeting might not be all that uneventful, because it could prove to be the last meeting at which the current ECB president Wim Duisenberg presides.