BCE cuts interest rates, and housing credit installments will continue to feel relief.

BCE decided to lower the main interest rate to 2.25%.

The European Central Bank (ECB) cut interest rates by 25 basis points, setting the main deposit rate at 2.25%. This decision comes at a time when the European economy shows signs of resilience, but also faces greater uncertainties, such as the impact of global trade tensions.

It is the 7th rate cut since June 2024. The goal is to control inflation, but the measure may bring some relief to families with mortgage debt.

Although the ECB warns of economic slowdown risks, the institution recognizes that the deflation process is advancing.  

For those with variable rate home loans, this reduction is good news: Installments will continue to decrease in the coming months as the Euribor (benchmark of the contracts) reflects this new reduction.

However, the decrease will be gradual and will depend on the contract review frequency. Still, it remains a positive sign for those who have felt the burden of high interest rates in the past two years.

Do you want to feel a faster decrease in your monthly mortgage payment? Opt for transferring your credit to another bank with better conditions! - Read more: How does transferring a mortgage credit work?

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