Deep rate cut expected as eurozone inflation falls below 2% ECB target

EUROZONE inflation plunged more than expected to a 26-month low in December as the economy slowed sharply, knocking back the euro on expectations of a deep ECB rate cut next week.

The Irish Mortgage Corporation said this represents good news for Irish consumers, particularly those paying a variable rate mortgage.

“It’s looking increasingly likely that the European Central Bank governing council will move to reduce the base rate from its current level of 2.5% sooner rather than later,” said director of the Irish Mortgage Corporation, Frank Conway.