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Real estate: why the drop in ECB key rates is good news
On Thursday, September 12, the European Central Bank (ECB) announced a new reduction in its key interest rate of 0.25 points. Good news for the French, explains journalist Jean-Paul Chapel on the 8 p.m. news set.
(France 2)
On Thursday, September 12, the European Central Bank (ECB) announced a new reduction in its key interest rate of 0.25 points. Good news for the French, explains journalist Jean-Paul Chapel on the 8 p.m. news set.
The reduction in the European Central Bank’s (ECB) key interest rates is good news since we will be able to borrow more cheaply. “Last December, the average rate for a 20-year loan rose to 4.45%”explains Jean-Paul Chapel on France 2, Thursday September 12. “Today, we are at 3.55%, and it is not over. Professionals are counting on a rate of 3.20% by the end of the year”continues the journalist.
“The money that the bank lends you, it borrows itself from the ECB, and its rate falls. We were at 4% in September 2023, and we are at 3.5% in September 2024”explains Jean-Paul Chapel. “When money is cheaper, your bank can pass on some of that to its customers.”he adds. This good news comes a little late, however. “At the ECB, the governors have been divided for many months between, on the one hand, supporting growth by lowering rates and, on the other hand, fighting inflation by maintaining high rates. Until now, they have preferred the second option”he concluded.
- Best rates.com
- European Central Bank
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