Will interest rates stop rising in 2023?

The European Central Bank (ECB) once again raised interest rates by 0.5% in December. It is the last increase in interest rates of 2022 and its president, Christine Lagarde, has assured more similar increases throughout 2023, until inflation is stopped. We tell you all the details below with the latest statements from Luis de Guindos , vice president of the ECB. Find the best mortgage without mistakes Going from bank to bank is a thing of the past. GET INFORMED FOR FREE ECB interest rates rise This latest increase in bank interest rates has been lower than the previous ones (0.75% in September and October) and the decision follows in the footsteps of other central banks, such as the United States Federal Reserve System (FED, for its acronym in English) and the Bank of England.

Forecasting interest rates and inflation

This latest move places the ECB’s interest rate at 2.5%. However, this figure in the eurozone is still considerably lower than the interest rates of the FED (4.5%) and the United Kingdom (3.5%). But the consequences are already manifesting: the Euribor reached 3% on Monday for the first Kuwait Telegram Number Data time since 2008. If you are thinking about applying for a mortgage , these measures will directly influence your monthly payments. Euribor forecast in 2023: Are variable mortgages going to rise? Forecasting interest rates and inflation Inflation in the eurozone in October was 10.6% and in November it fell to 10%. This is the first fall so far this year. Still, inflation remains too high and looks set to remain above the ECB’s 2% target for the next two years.

More measures from the ECB to alleviate inflation

Such interest rate hikes are a common tool for central banks to slow down the economy and combat rising prices. It is an action that they had not used previously and, for this reason, the ECB will monitor the evolution of the market with scrutiny throughout the year. Guindos has also justified the ECB’s actions: ” The meaning of monetary measures in the world is similar .” The only central bank that has not yet Turkey Telegram Number List carried out any restrictive measures is the Bank of Japan, but the rest of us are going in the same direction, taking into account the divergences and differences between us. How much does it cost to change a mortgage from one bank to another? How will interest rates affect my mortgage? Housfy Mortgages, we understand that that can be disconcerting.