The European Central Bank meets to decide

The meeting of the European Central Bank (ECB) on monetary policy this Thursday, February 2, and decisions will be maKe on a possible increase in interest rates in in the eurozone. Meanwhile, the Euribor , the reference index for variable mortgages, closes in January 2023 with an average of 3.337%. We tell you all the details! Possible increase in interest rates in 2023 The Governing Council of the ECB is in charge of the monetary policy of the euro zone and since last year its medium-term objective has been to curb the inflation rate to 2% . For this reason, since. The price of the euro had remained at 0.00% since March 2016. After two increases of 0.75%, the last increase was 0.50% in December 2022. The president of the ECB, Christine Lagarde, confirmed that they will

When will interest rates stop rising?

When central banks raise interest rates, the real intention is to cool the economy to reduce inflation . If we look at other central banks in the world, we will see that the measures that have been taken are very similar. For example, the Saudi Arabia WhatsApp Number Data United States Federal Reserve (FED) has gone from 0.00% in March 2022 to 4.25% in December 2022. The United Kingdom Central Bank also raised the price of the pound to 3.50% that same month. Christine Lagarde, in her interest rate forecast , predicts achieving her objectives by 2025, so we will have to get used to more increases of this type. Calculate your mortgage online and for free Use our mortgage simulator and discover the monthly payment.

What will happen to my mortgage?

When the ECB raises interest rates, it means that it is raising the price that any other bank will have to pay when borrowing money from the European Central Bank (ECB) . If the price of money rises, the Spanish banks we go to when requesting a mortgage also raise their interest France WhatsApp Number List rates accordingly: The most affecte are variable mortgages , whose interest rate is directly reference by the Euribor. With a Euribor at 3.337% in January 2023, it is normal to see significant increases in your installments. Fixed mortgages also end up increasing, after the high demand they have been experiencing recently. Mixed mortgages have become popular, as they combine a fixed interest rate in the first years and a variable interest rate for the rest of the period.