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Eurozone Interest Rates

All articles tagged with #eurozone interest rates

economy1 month ago•6 min saved

ECB Tightens Policy for the First Time Since 2023 Amid Energy Shock

The European Central Bank raised its key rates by 25 basis points to 2.25%, the first hike by a G7 central bank since 2023, in response to a persistent energy shock from the Middle East that is feeding inflation. Christine Lagarde said the move was a robust policy decision, not insurance, and the ECB also lifted inflation projections while cutting growth forecasts, with markets pricing in potential further tightening later this year.

via Financial Times|

#economy #european-central-bank #eurozone-interest-rates

global-economy1 month ago•5 min saved

Middle East conflict lifts mortgage costs worldwide despite steady policy rates

Mortgage costs have surged in the US, Europe, and the UK as the Middle East conflict raises government borrowing costs and oil prices, even with central banks keeping rates unchanged. The US 30-year mortgage rate has climbed to about 6.36%, Germany’s popular loan rate stands near 3.6% for a €350,000 loan, and the UK two-year fixed rate with 75% loan-to-value has risen to roughly 5.1%. Analysts say higher funding costs and a latent need to curb inflation could push rates still higher if the Strait of Hormuz disruption persists, potentially slowing home buying and refin refinancing activity.

via Financial Times|

#eurozone-interest-rates #global-economy #mortgages