ECB Keep rates steady

At yesterdays monthly ECB meeting they have decided, unsurprisingly, to keep interest rates steady at 1.5%.

What is making the news however is that it is highly anticipated that we are in for at least two 0.25% reductions over the next six months, starting as early as November, making for a very happy Christmas.

The markets would like the reductions to come quicker than that but it is understood that they will remain unchanged until JC Trichet steps down next month, sparing him the embarrassment of having to make good his epic blunder of two rate rises this year, further damaging Europe's hopes of some form of growth.

FS

Round-Up of the week

This week has seen a lot of talk about mortgages and debt relief, but very little concrete information I'm afraid. The Government and Central bank has ruled out widespread debt write offs.

You might remember back during the election campaign, Fine Gael promised a large increase in the mortgage interest relief for people who bought their first home between 2004 and 2008? Well it seems that that promise was for election purposes only. We are to wait until the end of the month to hear the report of a group of experts who will recommend what steps should be taken to help those in arrears/'the negative equity generation'.

The stories doing the rounds include; Banks taking a equity stake in your home in exchange for a reduction in your mortgage, mortgages being written off and renting your house from the Government and the introduction of intergenerational mortgages.

The Irish Independant have reported that some lending institutions are writing off debts or allowing people to settle debts for less than what is outstanding. This is being denied by the relevant institutions who very understandably want to avoid the potential for individual customers to take advantage of the situation, this is also known as 'Moral Hazard'.

KBC has increased its standard variable mortgage rate by 0.25% to 4.45%.

Bord Gais has got the approval for its 22% increase in Gas prices from the regulator, the ESB reacted by confirming it would do the exact same thing for its customers.

The number out of work increased by 1600 over the last month, a trend we had hoped that arrested itself some time ago.

The Government tax take figures have shown that they are collecting more then they had budgeted for, which is good news. The amount of VAT collected remains below target which just shows the lack of consumer sentiment out there.

FS

EBS increases its Standard Variable rate by 0.25%

EBS will increase its standard variable interest rate by 0.25% in October. This will bring their rate up to 4.93%

They blame the increased cost of borrowing for the building society.

FS

Bank of Ireland increase interest rates

Bank of Ireland have announced that they will be increasing the interest rate on their standard variable mortgage's by 0.5%. They did not increase their rates after the ECB rate hikes in April and July but have announced that they can no longer afford to absorb the cost of providing the lending facilities. Tracker mortgage customers rate would have automatically risen in line with the ECB rate. A increase of 0.5% adds €31 to the monthly repayment for every €100,000 owed.

Interest rates on overdraft facilities, personal and business loans will also increase by the end of the month.

In what could be positive news for mortgage holders, experts are now not only expecting the ECB to keep interest rates steady well into 2012, they are actually tipping that there could be a rate reduction on the cards. This is due to the fact that sluggish growth rates have meant that the risk of high inflation in the Eurozone has abated somewhat.

FS

ECB keep rates steady at 1.5%

This months ECB meeting in Frankfurt has kept the main interest rate steady at 1.5% which will be welcomed by everyone with a mortgage, and cursed by people with money on deposit!

The growing concern over the borrowing costs of Spain and Italy and sluggish growth figures worldwide have allowed them to bypass their inflation phobia for a time. The ECB have recommenced their controversial policy of buying Eurozone member states bonds in an effort to reduce yields which have risen to unsustainable levels for both Spain and Italy, whose economies are literally 'too big to fail'.

The EU commission president have admitted that the re negotiated bailout deals for Greece, Ireland etc did not go far enough to provide the stability that the bond market have been seeking, he urged governments to go further in providing funding other troubled countries, this idea was swiftly rebuffed by EU economic superpowers Germany and the Netherlands.

FS 100th Post :)

ECB raises interest rates by 0.25%

Can you hear that?.......its the sound of belts being tightened countrywide.

The much tipped increase in interest rates came to pass today, with at least one more to come this year if commentators are to be believed.

The ECB appointed inflation busting superhero JC Trichet again championed the cause of price stability above all else, maintaining that low inflation takes supremacy over and above the need for growth. Appeals for clemency from the peripheral EU countries fell on deaf ears.

He will retire this year but the the incoming Italian ECB chief is cut from the same cloth it seems. In contrast the Bank of England kept its rate steady at 0.50% for the umpteenth month in a row.

The 0.25% increase will cost homeowners on trackers about €15 extra per month per €100k owed.

FS 

No change in Interest Rates

Today the ECB announced that they will leave the interest rates steady at 1.25%. How ever JC Trichet confirmed that they would exercise "strong vigilance" over inflationary pressures during the next month. In ECB code this means that a rate hike (probably 0.25%) will follow in July.

FS

ECB keeps interest rate steady at 1.25%

At the monthly meeting of the ECB yesterday, John Claude Trichet announced that they would leave the interest rate at 1.25%, its unlikely there will be another rate rise until later in the summer, possibly in July.

This is good news for embattled mortgage holders.

FS

Calculate changes to your monthly mortgage

The National Consumer agency has put together a great mortgage calculator which allows you to see what any changes to your interest rate means to you on a monthly basis.

http://www.itsyourmoney.ie/iym/ratechangecalculator

FS