European Central Bank will cut interest rates next month, says McGrath

Finance Minister's comments come as PTSB make several deposit rate changes including a 0.9% cut on its three-year fixed rate

Mr McGrath added that a reduction would be 'welcome news' for households and businesses, adding that the pass-through of the ECB's decision will happen 'very quickly' for those on tracker mortgages. Photo: Leah Farrell/© RollingNews.ie

Finance Minister Michael McGrath said he expects the European Central Bank to start cutting rates at its next meeting on June 6 which would mark the bank's first rate reduction since its aggressive campaign launched almost two years ago to curb soaring inflation.

Following new inflation figures released this week showing further reductions in annual price levels, Mr McGrath told reporters on Friday: "The progress that we are making in Europe when it comes to inflation means that I do now expect that the ECB will begin to cut interest rates on the 6th of June."