ECB cuts benchmark rate by quarter-point as inflation declines

ECB president Christine Lagarde remained guarded in relation to further rate cuts and has previously stated that the Governing Council is not committed to a specific interest rate path. File picture: Michael Probst/AP

The European Central Bank (ECB) returned to its roadmap of rate cuts with a further 0.25% reduction in its deposit facility rate, providing immediate relief to tracker mortgage customers.

Tracker customers have felt the brunt of a high interest rate environment over the last two years but they are set to gain from the ECB’s latest monetary policy decision in addition to the 0.25% interest rate cut in June and a once off measure scheduled for later this month.