A 50 basis point rise in the interest rate is very likely. ECB President Christine Lagarde El Correo, the Spanish daily leaves no doubt: there will be a new increase in March. “It was a decision made at the last monetary policy meeting and all the data from these days confirm that this increase is very likely”, explains the president who announces: “We will publish our projections in two weeks. But I am confident that full inflation will fall in 2023, while core inflation will be more rigid in the short term. And I expect economic growth slightly better than the stagnation in the last quarter of 2022. But we will update the forecasts in two weeks and then we will release the numbers”.
What does the ECB rate hike mean for mortgages? “I am convinced that many banks are ready to renegotiate”, explains Lagarde. “Adjustable mortgages taken out by their clients who are now charging an exorbitant bill given the ongoing monetary tightening to combat inflation in order to ease the burden on families over time. It’s in their interest to do so, because they know that when inflation is under control, rates will go down.”
Source: IL Tempo
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
