ECB chief hints at further interest rate cut

ECB chief Mario Draghi announced that a further rate cut could be on the way as the eurozone economy remains fragile.

The main interest rate is at the historically low rate of 0.5%. Another 0.25% cut would be good news for the 375,000 tracker mortgage holders. However, it would put further pressure on the banks that are struggling to return to profitability.

Moreover, banks have been putting up rates on variable interest rate mortgages over the past two years.