Savers will be adversely affected by yesterday's ECB interest rate cut.

Just as analysts dampen down expectations that banks will pass on the benefit of the move to their standard variable rate mortgages, people who are currently managing to save are being advised that they will be negatively affected by the cut.

Yesterday, ECB President Mario Draghi announced at his monthly press conference, that his Board had agreed to cut interests by 0.25% to 0.25%.

It means people on tracker mortgages will save in the region of €15 a month per €100,000 they owe on their mortgage.

But for people on variable rate mortgages, analysts say it's unlikely the banks will pass on the benefits of the ECB's decision mostly because tracker mortgages are proving so expensive for them to maintain.

Earlier this year, when there was an expected rate cut in the summer, AIB had actually increased its standard variable rate to 0.4%.

Another side-effect of the interest rate cut is that savers will be negatively affected. Now not only will they earn less money on their savings, but any money they do earn will be hit with the higher rate of DIRT tax announced in October's budget.

Frank Conway, Director of the Irish Financial Review, explains to Newstalk's Breakfast:

On mortgages, Frank Conway says the banks are unlikely to pass on the cut:

Mario Draghi indicated yesterday that the new historically low interest rate could be cut even further in the future: