Bank of Ireland announced a reduction in interest rates on its 12 and 18-month fixed-term deposit accounts by 0.25%, effective from Thursday. Customers opening new accounts by June 4 can still access current rates, with the 12-month fixed deposit earning a 1.74% interest rate and the 18-month deposit earning 3.36%. Existing fixed-term deposit holders will retain their original rates until maturity. The bank clarified that there are no changes to other savings products, including its popular SuperSaver account, which continues to offer a 3% annual rate for 12 months. The rate cut follows a broader trend influenced by the European Central Bank’s (ECB) expected rate reduction scheduled for Thursday, amid recent inflation data showing a faster-than-anticipated decrease in the eurozone. Inflation in the euro area slowed to 1.9% in May, below the ECB’s 2% target, supporting prospects for further rate cuts. Traders estimate a 96% chance of a quarter-point rate reduction, which would bring the ECB’s main refinancing rate to 2.15%, the lowest since late 2022. The ECB has already lowered interest rates by a total of 1.75 percentage points over recent months. Meanwhile, Bank of Ireland has reduced its deposit rates by 0.75% in the same period, including the latest adjustment. Financial experts note that Irish banks generally offer low deposit rates, prompting savers to consider alternative options for better returns. The move by Bank of Ireland aligns with the ECB’s monetary policy easing aimed at controlling inflation and supporting economic growth. Customers are advised to act quickly if they wish to lock in current higher rates before the upcoming ECB rate cut.