If ecb cut rates in november

[mcriot29]

if the ecb cute rates in the next meeting on 3rd nov
When will that mean lower fixed rates from banks here
Reason I ask is I have a large sum of money I wish to put away for 2 years and I don't want to miss out on the good offers out now I will have the money on the 11 th of nov

 

[Lightning]

Bank deposit rates are based on supply and demand, Euribor rates, ECB rates, the need to comply with the IMF loans to deposits ratio and the need to reduce emergency CBI/ECB liquidity. Hence, there are a lot of factors at play more than just ECB rates.

The futures market has already priced in a 50 bps cut in ECB rates so in theory it should already be priced into term deposit rates. In reality, most Irish banks are still desperate for liquidity and term deposit rates are going up. The same is happening with term deposit rates in Spain, Italy and Greece. There is currently an inverse relationship between the futures interest rate market and the bank term deposit rates. Make no sense, but that's the reality when other factors than ECB rates are at play in a stronger sense.

To answer your question, there has never been a better time to get a good term deposit rate if you are happy to lock away your money. It is probably better to act sooner than later.