European Central Bank member Peter Kazimir indicated a strong likelihood for a forthcoming rate cut during a meeting of Eurozone governors next week, which would mark the fifth reduction since last September. This cut would benefit homeowners with tracker mortgages and new buyers by reducing monthly repayments. Kazimir hinted at the possibility of additional cuts, yet emphasized uncertainty regarding the exact number. The easing of U.S. trade tensions has also contributed to the optimism surrounding this monetary policy decision, though concerns about rising house prices remain prevalent as a consequence of lower lending costs.
The ECB is expected to cut rates next week, signaling its intention to support economic recovery, particularly benefiting borrowers with tracker mortgages and potential homebuyers.
Mr. Kazimir expressed confidence that a rate cut is imminent, asserting, "For me personally, the deal is done," emphasizing the likelihood of further cuts afterward.
While the rate cut is anticipated to aid in lowering mortgage costs by approximately €13 monthly for every €100,000 borrowed, economists caution about rising house prices.
Significant pressure on house prices persists despite lower interest rates, raising concerns about the overall effect on the housing market.
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