Taxas de juro: “Será dado tempo para ver o seu efeito na economia”

Interest rates: "Time will be given to see their effect on the economy"

At an event in Berlin, the President of the European Central Bank (ECB) had the opportunity to speak about the current state of interest rates. Stating that "it is not yet time to proclaim victory," she explains that we are now in a phase of unchanging rates, in order to give "some time to see its effect on the economy".

05 Dec 20233 min

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Unpredictable interest rates in the near future? If you have a home loan, it may be a solution to fix the rate through the fixed or mixed interest rate regime. Contact Poupança no Minuto and talk to a credit intermediary, for free, to understand how we can help you move forward in your specific case. Or first understand what is coming regarding interest rates in the eurozone.  

"Some time will be given to see its effect on the economy"

According to news shared by Notícias ao Minuto, the president of the European Central Bank (ECB), Christine Lagarde, made a comment at an event organized by the German Ministry of Finance, that, regarding interest rates "this is the time to wait and see", but "it is not yet time to cry victory".

Despite being able to consider that everything indicates a pause in which interest rates will not be increased anytime soon, the president reinforces that, "given the magnitude of the interest rate increases so far, some time will be given to see its effect on the economy," as stated in the news. This is because "given the scale of our monetary tightening, we can now give it some time to develop," explains Lagarde.

So, even though we are now seeing a decrease in inflation in the eurozone, it is not yet time to celebrate. "We can act again if we see increasing risks of not achieving our inflation target," explains the president of the ECB, noting that this is a "watchful and concentrated" phase where inflation "has decreased considerably".

Remember that the ECB kept interest rates at the same levels in the last monetary policy meeting, for the first time in 10 consecutive hikes. However, even though inflation is closer to the 2% target - having fallen to 2.9% in the eurozone in October - Christine Lagarde says that cuts in interest rates should not be expected soon. As, if they keep rates unchanged "for a long enough period, it will help bring inflation to our target at the desired time".

"The trip is not over yet and we have to finish this journey," emphasized the responsible party.  

How to prevent the interest rate on my housing credit from increasing?

Note that, as soon as the key interest rates start to decrease, this will be reflected in the overall economy, with a special impact on mortgage loans associated with a variable interest rate indexed to the Euribor.  

While this does not happen, know that it is possible to temporarily change the interest rate regime: And how? Through adherence to a mixed interest rate regime, transferring your mortgage from one bank to another. It is possible to fix the interest rate of your loan, at a lower rate, for a specific period such as two years. Returning, after this period, to the variable interest rate, when it is expected that interest rates will start to decrease.

To provide context, currently there are promotional campaigns for mixed rates starting at 3%, while interest rates remain at 4%. This could have a significant impact on the monthly installment of a loan.

Are you interested in this possibility? Contact the credit intermediaries of Poupança no Minuto to simulate your specific case for free. If you like the option, proceed with the process. All so you can start saving as soon as possible with your mortgage credit!  

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