Hard-pressed mortgage holders are unlikely to get good news when the ECB meets to discuss the possibility of a further interest rate cut today.

It's expected any decision to cut rates will be put on hold until policymakers assess the strength of lingering inflation pressures.

ECB officials could signal their intention to make a further cut at their next meeting, which is scheduled for September 12th.

Cuts

Economist Austin Hughes told Newstalk it's possible we could see two cuts before the end of the year.

“I think there's a good chance we will see, whether it comes in September or December, there's even a slight possibility of two rate cuts if inflation eases, as I hope and expect it will,” he said.

“I think it's a little bit better than 50-50 for September, but we're not going to see a rate cut this week.”

Annual inflation across the eurozone has been slowing steadily.

Recent estimates show inflation across the bloc is down to 2.5% in June.

ECB Danger

M Hughes said there is a danger the ECB could hold off for too long to make a further cut.

“There's been a lot of progress on inflation from near double digits to down close to 2% at the moment,” he said.

“I think the worry would be if they wait too long that you will be looking at a problem of inflation being too low rather than too high.”

The ECB’s target for inflation is 2% per year.