The European Central Bank is expected to announce an interest rate cut of a quarter of one per cent at its meeting today.

It would bring the rate to an historic low of 0.5 per cent and would be a boost to struggling homeowners.

A quarter of a per cent reduces the monthly repayments on every 100-thousand euro owed on a tracker mortgage by 15 euro.

The bank is also expected to unveil new measures to encourage banks to lend in the SME sector.

Ian Hunter from Cantor Fitzgerald stockbrokers says ithe rate cut won't have a huge impact: