ECB cuts interest rates by 0.25% as views diverge on future path for borrowing costs

Irish homeowners on tracker mortgages will benefit immediately by approximately €13 per €100,000 borrowed

ECB President Christine Lagarde. Photographer: Alex Kraus/Bloomberg

The European Central Bank cut interest rates by 0.25% on Thursday, though an uncertain economic backdrop is sowing divisions over the correct path for future borrowing costs.

It was the ECB's sixth cut to rates since June last year, with markets expecting one or two more by the end of 2025, largely driven by arguments that the battle against surging inflation has been largely defeated.