The European Central Bank (ECB) has cut interest rates to an historic low as part of an package of measures designed to bolster the euro zone economy.
The ECB announced a quarter-point cut in its key lending rate, which has now dropped from 4.2 per cent to 1 per cent since October 2008.
The rate cut means that the monthly repayments on a typical €300,000 tracker mortgage over 30 years will fall by €39 to €1,154.