European Central Bank expected to cut interest rates again
The European Central Bank is widely expected to cut interest rates by a quarter of a percentage point later today.
The move would bring its main rate to 2% which would automatically benefit tracker mortgage customers and feed through to many other borrowers.
The ECB's move comes after inflation in the countries which use the euro fell to 1.9% last month below the bank's target rate of 2% last month.
That leaves the door open for the bank to reduce rates for the eighth time in 12 months.
The bank has been steadily cutting the cost of borrowing since last summer from their high of 4% as inflation has become more subdued.
If rates are cut today it means a mortgage holder with 15 years left to run on their loan, would see repayments fall by €100 per month for every €100,000 borrowed.
Mortgage broker Michael Dowling said while tracker customers have benefited most people on variable have been "ignored" by the banks.
However, the banks have argued they did not pass on all the ECB's rate increases during the cost-of-living crisis.
Mr Dowling said "all the banks have adjusted their fixed rates downwards".
The Irish mortgage market has changed significantly over recent years with customers opting for better value in fixed products when are now the most popular.
At the end of last year 66% of mortgage holders or 461,121 customers were on fixed rates, 16% or 112,000 were on variable rates and 18% or 126,000 were on trackers.
While mortgage rates have fallen, the returns for borrowers have also dropped.
On the economic horizon observers will be closely watching comments from the ECB's president Christine Lagarde on the bank's assessment of the eurozone economy and consumer prices as Europe negotiates with the Trump administration on tariffs.
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