Poll expects ECB not to raise rates for 12 months

EUROPEAN Central Bank (ECB) rates are expected to stay at their record low level for at least another year, but steady hikes are then expected.

According to a Reuters poll, the ECB will hold interest rates at 1% for at least another year as it battles to revitalise a struggling economy and bring inflation back up to target.

None of the 79 economists polled last week said the ECB would shift rates from 1% when it meets on Thursday for its monthly meeting. This would be good news for tracker mortgage holders as their rates follow the ECB. The poll pointed to a higher 25% chance of a hike by the middle of next year, but Bloxham Stockbrokers said the results suggested the ECB would not raise rates until next October at the earliest.