Good news for home loans: ECB lowers interest rates again.
The European Central Bank (ECB) has once again reduced interest rates for the 5th consecutive time since June 2024, reflecting confidence in inflation returning to the 2% target.
BCE cuts rates by 0.25% for the 5th consecutive time.
The European Central Bank (ECB) announced a new reduction in interest rates, lowering the deposit rate from 3% to 2.75%. This measure is part of the process of easing monetary policy, which began in June of last year, and reflects the institution's confidence in inflation returning to the target of 2%.
According to the ECB, as read on Notícias ao Minuto, the decision was made based on the inflation evolution, economic dynamics, and effectiveness of the implemented policies. The central bank believes that the process of price decline is progressing as expected, despite some sectors still adjusting wages and costs to the high inflation of recent years.
The institution also highlights that, despite the economy continuing to face challenges, the increase in purchasing power and the progressive normalization of financial conditions are expected to boost demand in the coming months.
With this change, the benchmark interest rates for the deposit facility, the main refinancing operations, and the liquidity provision become 2.75%, 2.90%, and 3.15%, respectively.
This is the 5th consecutive interest rate cut, reinforcing the ECB's commitment to a monetary policy more suited to the current economic situation.
Read also: Explaining the Euribor: Learn all about this interest rate
Is it the ideal time to take out a mortgage or renegotiate its conditions? With interest rates falling, if you link your credit to the variable interest rate, you can access a more relieved monthly payment. Contact the credit intermediaries of Poupança no Minuto at https://www.poupancanominuto.com/contacto for continuous and free assistance in this contracting process, or simulate how much you would currently pay in this simulator: