The ECB's latest rate cut to the refinancing rate at 3.4% reflects a commitment to combat sluggish economic growth amid declining inflation across the Euro area.
Darragh Cassidy notes that while tracker mortgage customers will benefit with savings of around €25 per month, savers may see their rates fall, diminishing returns on deposits.
The ECB emphasized the ongoing disinflationary process, with inflation slowing to 1.7%, signaling an easing of labor cost pressures even amidst high domestic inflation.
Analysts anticipate continued downward pressure on variable rates, though the significant drop in interest rates could negatively affect savers with nearly €160 billion on deposit.
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