Possible More Interest Rate Cuts !!!!!!!!!!!!

Fatloss08

The European Central Bank could cut interest rates for the second time in less than a month next week, ECB President Jean-Claude Trichet said this evening. (October 27th)

“I consider possible that the Governing Council will decrease interest rates once again at its next meeting on November 6th. It is not a certainty, it is a possibility,” Mr Trichet said in a speech at a banking conference in Madrid.

Although he declined comment on the size of any move, analysts firmed bets on a repeat of the 50 basis point reduction on October 8th, when the ECB acted with other central banks in a bid to stem the intensifying financial crisis.

Mr Trichet said financial market turmoil was putting pressure on economic growth in the short-term and this was also easing inflation fears.

Still, he stressed that the ECB would only reduce rates from their current level of 3.75 per cent if the inflation outlook justified such a move.

“Taking into account the recent decline in commodity prices together with the substantial weakening demand that has emerged lately, upside risks to price stability have diminished,” he said.
“Any new monetary policy stance that we could decide on at our next regular monetary policy meeting must continue to allow us to tell our 320 million fellow citizens: ‘you can be confident.

We will deliver price stability in line with our definition of less than but close to 2 per cent in the medium term’,” Mr Trichet said

The_Conductor

Looking likely to be a .5% cut, but possibly even more. Its a relief for those with mortgages- but irrelevant for others- as the banks are making so bloody difficult to get credit...... Talk about one extreme to another......

Fatloss08

i heard off a few people that the irish banks may not pass the cut

firstly if they have the cheek to hike it up when rates go up then they should reduce it when it goes down

banks created the problem themselves , giving mortgages out willy nilly

The_Conductor

Fatloss08 wrote: »

i heard off a few people that the irish banks may not pass the cut

firstly if they have the cheek to hike it up when rates go up then they should reduce it when it goes down

banks created the problem themselves , giving mortgages out willy nilly

Correct.
They only intend to pass on the cuts to those holding tracker products- not like the interest rate cut last month, which was passed on to all, on the back of political pressure.

Fatloss08

im on a tracker

The_Conductor

Fatloss08 wrote: »

im on a tracker

Lucky you!

lynchie

So another .5% cut. Happy days

The_Conductor

lynchie wrote: »

So another .5% cut. Happy days

I was living in hope- they got a 1.5% cut in the UK...... lucky bastards.

patrickolee

smccarrick wrote: »

Correct.
They only intend to pass on the cuts to those holding tracker products- not like the interest rate cut last month, which was passed on to all, on the back of political pressure.

Most of the main banks have come out and said they _will_ pass the cut on (to variable rates). AIB, Ulster, Halifax, Bank of Ireland, ICS have all said they will pass on the cut. (Not to buy to let though)

Boy am I glad I ignored your advice a year ago and switched to a tracker! Lot of misinformation on these forums, which is puzzling.

ntlbell

patrickolee wrote: »

Boy am I glad I ignored your advice a year ago and switched to a tracker! Lot of misinformation on these forums, which is puzzling.

People who look for advice on extremely important financial matters on forums where any idiot can comment is even more puzzling.

patrickolee

True... which is why I ignored the advice! :-)

I hope you aren't calling anyone "an idiot". I certainly would not agree with you there.

ronbyrne2005

Fatloss08 wrote: »

i heard off a few people that the irish banks may not pass the cut

firstly if they have the cheek to hike it up when rates go up then they should reduce it when it goes down

banks created the problem themselves , giving mortgages out willy nilly

Many may pass it on but only because of the government bailout. The cost to banks to raise money (euribor,libor) is still much higher than ECB rates so trackers are costing them money, they are entitled to make a profit or they will go out of business.

The only reason the rates re being cut by central banks is because the European and global economies are in so much trouble! not good news although it might help some people here on tracker rates the overall economy will suffer from the Euro/gloabal recession. Be carefull what you wish for!

ntlbell

patrickolee wrote: »

True... which is why I ignored the advice! :-)

I hope you aren't calling anyone "an idiot". I certainly would not agree with you there.

I'm stating an open forum like boards.ie is a place where any idiot can give out advice. I'm not calling anyone in particular an idiot especially not smcarrick as I find his advice to be usually very well thought out and sound advice.

The_Conductor

ntlbell wrote: »

I'm stating an open forum like boards.ie is a place where any idiot can give out advice. I'm not calling anyone in particular an idiot especially not smcarrick as I find his advice to be usually very well thought out and sound advice.

Thankyou!

The_Conductor

patrickolee wrote: »

Boy am I glad I ignored your advice a year ago and switched to a tracker!

Just out of curiousity- where did I suggest you not switch?

In a thread of June 07- where we both posted- we discussed the "cost" associated with the security of fixed rate products. At the time it (before all hell broke loose in the financial sector), it was widely assumed that the ECB was going to increase rates by a minimum of another .5% and possibly much more (at the time rates were at 5%- they subsequently increase to 5.25%- but Eurozone inflation was topping 4% and it was widely believed that it was going to stay this way).

I was also discussing this with you in the Loan-to-value thread back in Jan-March '08, and also in a remortgaging thread in March, where I advocating renegotiating mortgages or moving mortgages in order to get better terms. You renegotiated your mortgage with AIB, and I congratulated you on the savings you got......

Fatloss08

ecb rates cut again to 3.25

patrickolee

smccarrick wrote: »

Just out of curiousity- where did I suggest you not switch?

From the Loan-to-value thread back in Jan-March '08

smccarrick wrote:

I wouldn't panic about switching mortgage if I were you- I'd keep my powder dry, as I reckon there may very well be welcome developments on the immediate horizon for mortgage payers.

Actually I think I misinterpreted what you meant by "keep my powder dry"? I thought you meant, don't do anything yet... but possibly you meant don't get worried?

The_Conductor

patrickolee wrote: »

From the Loan-to-value thread back in Jan-March '08

Actually I think I misinterpreted what you meant by "keep my powder dry"? I thought you meant, don't do anything yet... but possibly you meant don't get worried?

Truce- to be honest, I don't remember what my train of thought was at the time (even if the welcome developments did indeed come to pass (for pre-existing mortgage holders anyhow........)

My own mortgage (all 3 parts of it) are a tracker from BOI- and I argued a low LTV ratio with them, before it was the done thing to do so. I'm tracking at .6%- I must be costing them an arm and a leg at the moment....... Then again- I also have a car loan and an overdraft with them- so swings and roundabouts......

Did anyone see Austin Hughes on the 6 O'Clock news? Hes suggesting another cut for next month. I think its wishful thinking- there probably will be more cuts (particularly after the IMF report this afternoon), but next month would be smacking of desperation. Then again a 1.5% cut by the BOE is desperation personified....... Good news for pre-existing borrowers- irrelevant for anyone seeking credit- the squeeze is still as tight as ever........

mollydolly271

:Dok so someone clever give me the bottom line how much will i save per month??? (average)

Fatloss08

on a ECB Tracker

around €30 a month per 100k borrowed

patrickolee

No worries Shane, you meant well anyway. (and you are as always a gentleman)

mollydolly271.. as Fatloss says about 30 a month per 1000, depending on your term etc. However, as you probably haven't got the saving from the last decrease which went active (for me anyway) 20th Oct and this one announced today which will go active sometime in December... it will be 60 a month per 1000, from your payments in Sept.

Here's a link... you can plug in your own figures, to get exact amounts

http://www.itsyourmoney.ie/index.jsp?pID=118&nID=298

and more cuts coming.... yippeeee

Vegeta

Haven't drawn down any money yet on my mortgage and it sounds like no one is doing trackers any more.

So does anyone know what banks intend on passing on this rate drop?

The_Conductor

Vegeta wrote: »

Haven't drawn down any money yet on my mortgage and it sounds like no one is doing trackers any more.

So does anyone know what banks intend on passing on this rate drop?

As far as I know they pretty much all are passing on the rate cut- feel free to correct me someone if there are exceptions.

astrofool

I think the government guarantee schemes/government bailouts has the banks over a barrel with regards passing on the cuts.