Following the recommendations of the economist Niño Becerra for the month of September, and with the rise in interest rates that will affect all citizens in one direction and another, the economic journalist Jorge Millán analyze the situation and how it will affect savers.
“Savers, who have been seeing their frozen deposits for years, will see how they grow little by little,” he explains in 20minutos. A measure that many citizens hope to see their savings recover from negative figures.
It should be remembered that the ECB is studying formulas so that banks do not benefit from increases in interest rates. Some benefits fallen from the sky that could reach 24,000 million.
– Jorge Millán (@jmillan94) July 12, 2022
The banks dilemma
“If borrowing money is more expensive, companies will ask for fewer loans,” he says in relation to large companies and banks.
Regarding the repercussion for the citizen, ”the greater expense in mortgages will cause consumption to cool down. The cascading effect will curb demand, and therefore inflation will also fall. But raising rates cools the economy and will slow growth,” he details.
If we add the uncertainty about whether there will be gas in winter, and the consequences of the war in Russia and Ukraine, “the ECB has a double dilemma, to tame inflation and that the tools to achieve it do not lead us to recession when the economy is more fragile,” he adds.