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Mario Draghi has cut interest rates three times since his appointment as ECB President, and could do so again today. Peter Dejong/AP

Relief for tracker mortgage holders as ECB cuts main interest rates

Falling inflation around the eurozone – particularly in Germany – means big decisions from Draghi and co.

Updated, 13:03

THOUSANDS OF TRACKER mortgage holders have been handed some relief today, with the European Central Bank cutting its main interest rates.

The governors of the Frankfurt-based bank took 0.25 per cent off the bank’s main rates at their meeting in Bratislava today.

Inflation throughout the eurozone has fallen in the last few months – and last month stood at 1.2 per cent, its lowest in over three years.

The ECB’s main stated task is to maintain price stability – that is, to keep the cost of living relatively unchanged – and usually interprets this to mean an ‘ideal’ inflation rate of 2.0 per cent.

When inflation is considered too low, the ECB can increase it by introducing more money into circulation – done by reducing its interest rates in an effort to entice more borrowing from commercial banks.

The move is good news for the holders of tracker mortgages, however, who would see an immediate drop in the interest rates charged to their mortgages.

It may be slightly less optimistic news for the holders of other mortgages, however – with many banks shouldering losses on their tracker mortgages, and needing to make up the money through penal increases on other variable rate loans.

The cut is mark the fourth cut in the ECB’s rates since Mario Draghi took office as its president in November 2011.

PIC: This is the new €5 banknote which enters circulation today

Read: Eurozone inflation hits new low, raising prospect of ECB rate cut

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    Mute Alan Hayes
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    Aug 22nd 2016, 3:13 PM

    It was savage craic. People travelled from all over Ireland, several from US and many from UK & rest of Europe. Donations to Irish Cancer Society, the only group providing Night Nurse service to terminal cancer patients at home. Proud to have been involved.

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    Mute Crístóir Ó Duinn
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    Aug 22nd 2016, 3:02 PM

    Perfect weather for a ginger convention too, overcast.

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    Mute Tony Skillington
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    Aug 22nd 2016, 9:13 PM

    Lot of copper tops

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    Mute Darren Doyle
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    Aug 22nd 2016, 3:51 PM

    Nothing sexier than a woman with red hair

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    Mute Eyepopper
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    Aug 22nd 2016, 3:59 PM

    I dunno…. dat sheep!

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    Mute Donal O Neil
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    Aug 23rd 2016, 8:50 PM

    Oh she’s lovely !!!

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    Mute Rumpelstiltskin
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    Aug 22nd 2016, 3:50 PM

    First they meet up….then they plot the take over

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    Mute The Girl
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    Aug 22nd 2016, 2:59 PM

    The only pure Irish…Ginger, Porcelain skin, Freckle face :-). Gingers Rule.

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    Mute kieran fitzgerald
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    Aug 22nd 2016, 3:04 PM

    Sure they are, let’s just ignore that the original inhabitants of this Little rock came up from Iberia shall we and go with some Victorian notion of racial purity.

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    Mute The Girl
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    Aug 22nd 2016, 3:15 PM

    Relax @Kieran…life’s too short.

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    Mute Ted Murray
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    Aug 22nd 2016, 3:20 PM

    We should have an annual begrudgery festival :p

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    Mute An_Beal_Bocht
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    Aug 23rd 2016, 10:38 AM

    It’s thought red heads were of Norman royalty origin, Henry VIII was a flaming ginger. The native Gaelic were most likely dark haired

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    Mute Tomás Ó Briain
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    Aug 22nd 2016, 4:13 PM

    Bloody redheads! They think that they’re smarter just because they’ve got higher IQs!

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    Mute Gary Heslin
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    Aug 22nd 2016, 3:29 PM

    Have to agree with “The Girl” kieran relax life is way way too short..give someone a hug.

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    Mute dublinlad
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    Aug 22nd 2016, 2:45 PM

    The king looks bald to me?

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    Mute BERTIE
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    Aug 22nd 2016, 3:59 PM

    Slap head gathering

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    Mute voice of raisin
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    Aug 22nd 2016, 5:32 PM

    Funny, I was told that not one soul turned up…

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    Mute Chris Nolan
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    Mar 24th 2017, 3:50 PM

    @voice of raisin: Nice dad joke, go back to watching two and half men.

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    Mute Tomás Ó Briain
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    Aug 22nd 2016, 4:12 PM

    Bloody redheads! Think that they’re smarter than everyone else just because they’ve got higher IQs.

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    Mute Ailbhe Gator
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    Aug 22nd 2016, 5:05 PM

    The redheaded queen looks quite brunette in that picture

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    Mute manbearpig
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    Aug 22nd 2016, 3:54 PM

    Day walkers

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    Mute Chris Nolan
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    Mar 24th 2017, 3:58 PM

    @manbearpig: South park called they want their shit jokes back.

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    Mute John Judd
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    Aug 22nd 2016, 8:27 PM

    Gingers are hot ;)

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    Mute Mindfulirish
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    Aug 22nd 2016, 4:29 PM

    God help them — mutant be able to afford blonde dye.

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    Mute Chris Nolan
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    Mar 24th 2017, 3:53 PM

    @Mindfulirish: I hope you dye.

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    Mute JJ O Riordan
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    Aug 22nd 2016, 9:55 PM

    They don’t like being singled out, yet they have a convention

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    Mute Stuart Kelly
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    Aug 22nd 2016, 8:33 PM

    New research concludes that gingers have no souls.

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    Mute Chris Nolan
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    Mar 24th 2017, 4:07 PM

    @Stuart Kelly: I’ve got two soles, hows about i shove one of them up your smelly old arse.

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