John Burns: The ECB keeps interest rates at 2pc. What does it mean for Irish mortgage holders?

"Given the political turmoil in France and the uncertainty caused by US president Donald Trump's tariffs, why did the European Central Bank (ECB) decide not to cut interest rates again?"

"The governing council, at its meeting in Frankfurt, kept the main deposit rate at 2pc. This was the second meeting in a row where it left interest rates unchanged, ending a long series of cuts that went all the way back to June 2024. The ECB had reduced rates eight times in a year, bringing them down from a peak of 4pc."

"The ECB had reduced rates eight times in a year, bringing them down from a peak of 4pc."

Political turmoil in France and uncertainty over US tariffs contributed to a pause in further easing. The governing council met in Frankfurt and kept the ECB’s main deposit rate at 2pc. This represented the second consecutive meeting with no change, marking the end of a series of easing moves that began in June 2024. Over the past year the ECB reduced rates eight times, lowering the main rate from a 4pc peak to 2pc. The pause reflects a decision to halt additional cuts amid heightened external and domestic uncertainty while assessing economic and political developments.

Read at Independent