Once again, ECB keeps interest rates unchanged.

Never see interest rates go down again? There are other solutions that can make it happen! Talk to a credit intermediary from Poupança no Minuto and find out how. But read the data released beforehand.

Once again, ECB maintains interest rates at the same values.

The European Central Bank (ECB) Council has once again decided to keep the three ECB key interest rates unchanged, as expected by analysts.

"The information that has been made available has largely confirmed the previous assessment by the ECB Council of medium-term inflation prospects. Inflation continued to decline, driven by lower inflation in food and goods prices," it can be read in a Notícias ao Minuto news, citing the ECB statement.

In addition, the bank considers that the "majority of measures of underlying inflation are slowing down, wage growth is showing a gradual moderation and companies are absorbing part of the increase in labor costs in their profits."  

Please note that the interest rate applicable to main refinancing operations and the interest rates applicable to the marginal lending facility and the deposit facility will remain unchanged at 4.50%, 4.75%, and 4.00%, respectively.

This pause comes after the ECB raised interest rates to the highest historical level in an unprecedented cycle of monetary tightening that has led to a 10-fold increase in rates since 2022.

The decision to keep the rates at the same values happens now for the fifth consecutive time, in a context of multiple crises, due to the increase in energy prices in the context of the war between Israel and Hamas and the crisis in the Red Sea, which has raised transportation costs.

Central bankers who are members of the ECB were clear in the most recent statements, namely during last week's Davos forum: the odds of the Frankfurt institution relaxing monetary policy before Summer are low", the news reads.

The horizon mentioned by the president of the ECB, Christine Lagarde, leads her to consider likely interest rate cuts during this period, however, insisting on the importance of future data on the evolution of prices or wages.

Mortgage credit: What does it mean for rates to remain at the same values?

For home equity borrowers with variable interest rates, the fact that interest rates have not risen may be good news, however, the fact that they have not fallen is also not favorable.

If you have a mortgage loan indexed to Euribor, it means that with unchanged rates, it will take longer to see your monthly installment decrease.

In this case, you can look for other options for more immediate relief on your monthly installment, such as changing the interest rate regime to mixed or fixed.

You can access significantly lower rates through current bank campaigns in the mixed rate regime. 

Renegotiating your current terms or moving forward with a credit transfer to another bank can possibly result in a reduced monthly cost for your home financing. Are you interested in these options? Speak to the credit intermediaries of Poupança no Minuto to, through a free service, hire the new, and better, conditions for your credit.