In an unexpected move - the ECB has cut its main refinancing rate by ten points to a new historic low of 0.05 percent.

That's good news for tracker mortgage holders - but banks are expected not to absorb such losses themselves, previously having raised variable rates.

The euro has gone down by 0.8 percent against the dollar on the back of the surprise cut.

Sky's Ian King says the ECB is doing it to try and boost demand