The European Central Bank raised interest rates by 25 basis points on Thursday, bringing the rates up from 2.25% to 2.5%.
This move was expected, given the inflation data. According to economist Tasos Yiasemidis, who spoke on the Alpha Kalimera show, he referred to oil prices, which have reached March levels, when the war in the Middle East began.
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“So the escalation of the crisis led to corresponding decisions by the European Central Bank.”
SEE ALSO: Which loans are affected by the ECB’s new interest rates? An example of how the installment amount increases
Which loans are affected by the increase?
As the economist explained, most variable-rate loans are tied to the Euribor.
“Euribor is the interest rate that changes every quarter. Typically, the terms of these contracts—which allow banks to adjust the interest rate—are renewed quarterly. So, at the next interest rate review, the borrower will be charged that specific increase.”
As for borrowers who have agreed to a fixed interest rate, however, they will not see any increase in their interest rates.
“So, this clearly applies to borrowers who have agreed to a variable interest rate; they will see changes—or a small change—in their monthly payment.”
