Break after 8 cuts in a year. To weigh the US duties and financial uncertainty
After 8 consecutive cuts in one year, the European Central Bank decided to leave Interest rates unchanged of reference. Confirmed the 2% on the deposit rate, 2.15% on the main refinancing and 2.40% on Marginal Lending.
“The Board of Directors”, reads the official statement of the ECB, “is determined to ensure that Inflation stabilizes its 2% goal in the middle term “and reiterates the intention to adopt a”data based on data and meetings“To guide future monetary policy decisions. It also remains active Transmission protection tooldesigned to intervene in the presence of “unjustified and disordered market dynamics”.
ECB, the reason for unchanged rates
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The cooling of monetary policy is explained in theprudent approach adopted by the ECB in recent months. After an aggressive loosening phase, the Frankfurt Institute now prefers to evaluate the effects of the measures already implemented, avoiding premature moves in a macroeconomic context still characterized by strong instability. There will be inflation expectations, updated economic and financial data, the dynamics of the basic inflation and the effectiveness of the transmission of monetary policy to direct future decisions. No predetermined path, therefore, but a Continuous and adaptive monitoring of the Eurozone economy.
What does it mean for mortgages and consumers
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The maintenance of rates at current levels translates into a scenario of Stability for families and businesses. Who has in progress A variable rate mortgage It will not undergo immediate variations in the installment. According to the simulations reported by Corriere della Serafor a new 126 thousand euro mortgage in 25 years with a 70% Loan to Value, the best variable rate offers start from a lot of 2.29% and a installment of about 552 euroswhile those at a fixed rate from a installment about 592 euros (Tan of 2.92%). Also as regards the subrogations, the conditions remain competitive: the best fixed rates start from a tone of 3.05% (installment 600 euros), while the variables of a lot of 2.29% (installment 552 euros).
The next moves of the ECB
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The expectations of the markets now look to the next September meeting. According to updated projections, the probability of a further cut of the rates are given to 50%. But several observers believe that the conditions for a new expansive intervention are concrete. According to experts, the inflation close to the objective and the normalization signals on the markets do not exclude a descent of the policy rate up to 1.5%.
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