Draghi: ECB has not ruled out further rate cut

The ECB has not ruled out cutting interest rates further than their historical low of 0.5% in a move that could see Irish banks lose even more money on their tracker mortgage books.

Head of the ECB Mario Draghi said, “we haven’t reached the zero bound” and rates will “stay where they are or go lower”.

Mr Draghi’s comments mean that if the council of the European Bank thinks the European economy needs a further stimulus, it could cut the ECB rate as low as a 0.25%.