ECB set to keep interest rate at record low until 2012

INTEREST rates set by the European Central Bank (ECB) could stay at a record low until 2012, it has been suggested.

Yesterday’s decision by the ECB to keep interest rates at 1% is particularly good news for homeowners on tracker mortgages.

Tracker mortgages are based on rates set by the ECB, while rates on standard variable mortgages can be set by banks, many of which have started to increase rates significantly.