The ECB could raise rates to 2.75% this Thursday
Some analysts even considered possible that the entity rises in rates 50 basis points, rather than the 25 that had been calculated so far, with its consequent rise in shares of mortgages.
The forecasts for growth in the eurozone and inflationary pressures that generate energy prices are pushing the European Central Bank, to be held on Thursday, June 8 in Madrid and could realize a further rise in interest rates.
The economic projections for the European Commission have raised upward growth forecasts by the end of the year and reinforcing the chances that the ECB will take the decision to raise rates at least in a pastern from 2.50% to 2 , 75%. Following the rise in the past on March 2, the ECB president, Jean Claude Trichet hinted at a forthcoming increase in April 'possibly in June, and now there are all circumstances for that to happen. It also weighs the inflation-moving upwards in the eurozone and in the case of Spain, according to the indicator front of the National Institute of Statistics, will fall from 2.9% to 4.1% year with the May figure to be known next day 13. The Euribor, the benchmark for mortgage loans, rose in May for the eighth consecutive month, up to 3308%, the highest level since August 2002. In one year, half the mortgage, 120,000 euros to 20 years, has grown from 653 to 721 euros a month, 68 euros for the moment that family economies seem to assume without problems.
Spain will be the most affected European country where this rise as more than 90% of the mortgage loans are contracted hipotecaros variable rate.
Written by Carlos Lopez on June 5, 2006 with 6 comments
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