Eurozone rates stay put

The European Central Bank (ECB) has held interest rates, meaning the cost of euro mortgages may stay unchanged.

Investors looking to buy in countries such as France, Italy, Portugal, Spain or Cyprus may find that they are able to obtain favourable rates after the ECB revealed yesterday that it had decided to keep the main refinancing operations rate at one per cent.

It also said the marginal lending facility and the deposit facility will remain the same at 1.75 per cent and 0.25 per cent respectively.

With the Bank of England also holding its base rate this week, this factor will not play any part in influencing the direction of the cost of euros for those changing from sterling, something that has been improving for Britons recently.

The director of dealing at foreign exchange firm Currencies Direct Mark O'Sullivan told the Financial Times last week that this had provided a "confidence boost" to Britons wishing to buy in the eurozone, with the result being a rise in enquiries.

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