The European Central Bank on Thursday announced a second rate cut of the year by slashing its deposit rate by 25 basis points to 3.50 per cent.
The move comes as a good news for tens of thousands of people with tracker mortgages who will see the benefit of the cut immediately.
The Frankfurt-based central bank also confirmed its main refinancing rate would be decreased to 3.65 per cent from September 18.
According to Irish Independent, there are a total of 180,000 customers with tracker mortgages.
The ECB rate cut comes as inflation is now within striking distance of its 2 per cent target and the domestic economy is skirting a recession.