Mortgage blow as ECB holds 1% rate

MORTGAGE holders were disappointed that the European Central Bank chose to hold its benchmark interest rate at 1%, dashing hopes of a rate cut.

Rachel Doyle, director of the group PIBA, said that Irish mortgage and insurance brokers had hoped the ECB would reduce rates. She said the “all too conservative” decision to simply hold at the 1% rate would do little to ease the very difficult economic environment and outlook.

“With consumer sentiment at a low ebb and with the continuing uncertainty in the eurozone a more aggressive cut is warranted, bringing the rate down to 0.5%, similar to that applying in the UK.