The rate hikes make financing more expensive that capture households, companies and States to cover their expenses and investments. The official rates, thus, serve as a reference for the rest of the interest rates, such as the euriborthe indicator to which the most mortgages variable rate in Spain. The effect begins to be felt even before official rates rise. Central banks, thus, tend to give clues in advance of their next movements and the market also tries to anticipate them, which makes private rates rise or fall sooner let the officers do it.
The Euribor, in fact, began to increase at the end of last year, from the historical low of -0.505% from November to 2.233% in September. In the last days it is above 2.7%. it is making the fees more expensive of mortgages and will do so more pronouncedly in the coming months. In addition, the new credits they also become more expensive: the average interest on new mortgages has gone from 1.38% at the end of last year to 2.03% in Augustwhile that of the consumer loans has risen from 6,1% al 7,09%. To the extent that the ECB raises rates more or less, household financing will become more or less expensive, especially since this Thursday’s rise will not be the last, except for surprises.