When the European Central Bank (ECB) makes monetary policy decisions, they have an effect on the economy of companies and families. This January, the Governing Council has decided to continue lowering official interest rates until the reference in 2.75%. A decision with which the break undertaken by the Federal Reserve is unmarked. The deposit rate is what is now used as a reference for the price of money. And its descent or rise impacts in that same way, more or less directly, on the price paid by companies and families for credit and what they receive for their deposits. Related standard news If the ECB separates its path from the Fed after the arrival of Trump and founces the types again by 0.25 points Rosalía Sánchez The Governing Council leaves the price of money in 2.75% with the fourth consecutive cuts Mortgages are one of the products on which the most focus on being the most widespread credit in society. The impact of ECB types on housing loans is on the Euribor, which is actually the price at which banks are lent to each other and used as a reference for mortgages. In this sense, if the monetary organization lowers types, the Euribor usually does the same, although it is true that the index is usually anticipated to the decisions of the Governing Council. For practically everything 2024, the Euribor has been down since it soon began to discount that the ECB would start the price of money. This January, on the other hand, has risen slightly and is expected to close something above 2.5%. A level still below the type of deposition. What seem to increase the Euribor is that after the descent of this January, the Central Bank will not make as many cuts this 2025 as expected a few months ago. Hence the brake on the most used index for mortgages. In any case, the performance of the Euribor still reduces housing loans since in most cases the mortgage is updated from one year to another, and in the interannual comparison it is registered down. Mortgotecaiagún the HelpmyCash Mortgage Analyst, Miquel Riera, «Variable mortgages that are going to be reviewed with the value of the Euribor of January 2025 will be reduced, despite the last rise of this index, and its holders can save an average of something else of 1,000 euros a year. On the date of review, the Bank uses the last published value of the index to recalculate the applied type: if it is lower than that of the previous update, the fees will go down, while if it is superior, the monthly payments will be more expensive. “Although the Euribor will close January with an approximate value of 2.53%, higher than that of December, it is a price much lower than those registered a semester (3,526%) and a year ago (3,609%),” they point out. According to calculations of the portal, for example, a person who has an average variable mortgage signed with a pending amount of 150,000 euros, a period of 25 years and an interest of Euribor plus 1%, if it is updated semesterly with the January value of the index of the index of the index of the index of the index of the index of the index of the index of the index of the index Their installments will fall from about 836 euros to about 753 euros per month, which will mean savings of about 83 euros per month (about 496 euros to the semester). And if the review is annual, the monthly payments will be reduced from 843 to approximately 753 euros; about 90 euros less per month (almost 1,077 euros less a year). But, in any case, analysts suggest that the index could end in the middle of the year in the environment of 2%. Beyond the mortgages, the decreases of ECB types also impact on the cost of loans to companies and consumer loans for families. An impact that translates into a lowering of them. Also in the deposits the effect of the price cut by the Central Bank of the Single Currency Zone is appreciated. If the types lower, so will what the financial institutions pay to their clients for the deposits.
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