ECB may move to freeze or cut interest rates, says BoI

INTEREST rates could be cut by the European Central Bank (ECB) by as much as 50%, according to Bank of Ireland — a move that would wipe off €360 a year off repayments on a €100,000 mortgage.

The bank’s latest update on the economy also saw it revising its forecasts for the full year and it now projects GDP growth of 1.5%, with GNP set to rise by 1%.

The Bank of Ireland’s Quarterly Economic Outlook said the ECB is now effectively adopting a bias to ease. It said that at worst, this may mean rates on hold for some time and at best a 50% cut.