BCE decides (once again) to keep interest rates unchanged.

Want to reduce the interest rate on your credit? Talk to a credit intermediary from Poupança no Minuto and find out how we can help you! But first, understand what is at stake due to the unchanged interest rates.

BCE maintains rates unchanged for the fourth consecutive time.

For the fourth consecutive time, the European Central Bank (ECB) decided to keep unchanged the three main interest rates.

The decision aligns with what analysts had expected and was announced in a statement by the ECB.  

According to the statement, quoted by Notícias ao Minuto, "the ECB Council decided today to keep the three key ECB interest rates unchanged. Since the last ECB Council meeting in January, inflation has fallen again. (...) ECB experts now project that inflation will be, on average, 2.3% in 2024, 2.0% in 2025 and 1.9% in 2026".

It can also be read that the institution guarantees to be "ensuring the timely return of inflation to its medium-term target of 2%".  

Based on its current assessment, the ECB's Governing Council considers that the ECB's key interest rates are at levels that, if maintained for a sufficiently long period, will make a substantial contribution to this end. The Governing Council's future decisions will ensure that the key interest rates are set at sufficiently restrictive levels for as long as necessary," the news quotes.

So, the rates remain unchanged: the interest rate on the main refinancing operations at 4.50%, the interest rate on the marginal lending facility at 4.75%, and the interest rate on the deposit facility at 4.00%.  

This decision to keep the benchmark interest rates unchanged has an impact on the overall economy, as it reflects, for example, in bank loans, mortgage loans, market credits, interest rates on bank deposits, or other investment products.

What is the impact on the monthly payment of my housing credit?  

By keeping interest rates at the same values, the Euribor rates also remain unchanged without rising. So, if you have a mortgage with a variable interest rate, your monthly installment will not be affected.  

However, even if the installment does not increase, it will also not decrease yet. And if this is an option you need immediately, know that you can achieve a lower monthly installment if you have a mixed interest rate regime.  

To access this regime, you can renegotiate the terms of your financing with your bank or, if it does not allow the change, transfer the credit to another bank that allows it. To have a better understanding of the impact: while Euribor rates remain close to 4%, some banks are promoting campaigns of mixed rate starting from 2.50% if you fix the rate for a period of one year.

Interested? The credit intermediaries from Savings Minute can collect several proposals from banks, for free, and mediate the entire process of renegotiation or transfer of your financing. Contact us and ensure a lower monthly installment for your housing credit!