Oil volatility could affect ECB rate cuts, warns French bank chief
The European Central Bank (ECB) needs to assess fluctuations in oil prices and the euro as it sets borrowing costs, according to Governing Council member Francois Villeroy de Galhau.
While the ECB doesn't target a particular exchange rate, the common currency has demonstrated surprising strength against the dollar since US president Donald Trump began his tariff push.
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The Journal
an hour ago
- The Journal
Ireland is seventh most expensive country for mortgages in the eurozone
IRELAND IS THE seventh most expensive country in the euro area to take out a mortgage despite falling interest rates, according to Central Bank statistics released today. The Irish average mortgage rate is the lowest it has been since April 2023. However, as rates fall faster elsewhere, Ireland has climbed one place higher in the rankings of most expensive eurozone countries to take out a mortgage. The average interest rate on new Irish mortgage agreements was 3.6% at the end of June, in comparison to the eurozone average of 3.29%. Trevor Grant, chairperson of Irish Mortgage Advisors, said the rules imposed on Irish lenders are contributing to Ireland being one of the more expensive countries in the eurozone for home loans. He said: 'Irish lenders are required to hold more capital than many of their European peers. Also, when a borrower defaults on a mortgage, Irish lenders have stated that they often find it more difficult than other European lenders to take control of and sell off the assets that were pledged as collateral to secure the mortgage.' Grant advised mortgage borrowers to avoid making large financial decisions in the hope that interest rates will further drop. Advertisement He said the pace of further mortgage rate cuts is likely to 'slow or even come to an end' due to the European Central Bank's decision to pause rate cuts last month . Instead, he advised borrowers to asses their mortgage options and secure a strong mortgage deal now. Grant said there is 'still room for improvement' and competition is slowly bringing down interest rates. 'There is still plenty of competition out there amongst lenders and for borrowers to take advantage of. Some lenders started offering sub-3% mortgage rates this summer, which represented a significant milestone for Irish borrowers and should lead to substantial savings for homeowners and house buyers,' he said. 'Borrowers, however, need to be proactive. Customer apathy means many are paying more for their mortgage than they need to. Now is the time to assess your mortgage options carefully. The window for securing a strong deal is open, especially as lenders continue to price more competitively.' Colin Rockett, Senior Mortgage Advisor with NFP Ireland, said the interest rate reductions in Ireland are 'modest and not fast enough to keep pace with wider eurozone trends'. He warned that the 15% tariffs on most imports from the EU to the US could push up inflation in Ireland and across the EU, which may cause an increase in ECB interest rates in the coming years. A rise in ECB interest rates means mortgage borrowers could come under pressure. Rockett advised borrowers to speak with advisors about potential savings on their current mortgage through switching or locking in better terms. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Irish Independent
an hour ago
- Irish Independent
Glanbia weighs impact of reciprocal tariffs on investment decisions
Shares in Irish group jump 14pc amid better than anticipated results The tariffs imposed by President Donald Trump, and reciprocal taxes imposed by other countries on imports from the US, are prompting Glanbia to carefully assess its future capital allocation, according to chief financial officer Mark Garvey. The company – which has operations across the world, including in North America, Latin America, Europe, India and China – is a leading performance-nutrition business with a health and nutrition division that offers ingredient and flavour solutions to customers.
Irish Examiner
2 hours ago
- Irish Examiner
Mortgage interest reductions lag well behind ECB cuts, Central Bank data shows
The average mortgage interest rate has declined by just over 0.5% in the year to June during which time the European Central Bank (ECB) has cut interest rates nearly in half over eight separate reductions, new data from the Central Bank of Ireland shows. According to the data, the weighted average interest rate on new Irish mortgage agreements as of the end of June 2025 was 3.60% - which is down from the 3.61% recorded in May and the 4.11% recorded in June 2024. In the 12 months to the end of June, the ECB has been steadily cutting its main interest rate from 3.75% to 2%. The eurozone average interest rate now stands at 3.29% with Ireland having the seventh highest rates. Latvia has the highest interest rates at 4.15%, followed by Estonia at 3.73% and Germany at 3.68%. The average interest rate on new fixed rate mortgage agreements, which constitute 85% of the volume of new mortgage agreements, was 3.52% in June. The average rate on new variable rate mortgage agreements was 4.08%. Daragh Cassidy of price comparison website said there is still a likelihood that the ECB will cut rates once more before the end of the year 'meaning mortgage rates should creep slightly lower over the coming months'. Mr Cassidy said there is a wide variation in rates across the market and he would encourage consumers to look around when applying for a mortgage. In total, the value of new mortgage agreements in June increased by €188m to €996m compared to June last year. Re-negotiated mortgages totalled €285m during the month, up €144m year-on-year. The average interest rate on new consumer loans increased to 7.87% with the total value of these new loans reaching €222m. The average interest rate offered on household overnight deposits is just 0.13% which has been unchanged over the last seven months. The average interest rate on new household deposits with agreed maturity decreased to 1.87% in June, representing an 88 basis point decrease annually.
