More mortgage grief as interest rates rise to 3.75
8 March 2007, FRANKFURT – The European Central Bank raised its key interest rate a quarter of a percentage point to 3.75 percent, bringing more bad news for mortgage holders.
8 March 2007
FRANKFURT – The European Central Bank raised its key interest rate a quarter of a percentage point to 3.75 percent, bringing more bad news for mortgage holders.
The ECB sets monetary policy for a 13-nation economy of 317 million people and more than 15 percent of global gross domestic product.
The rise directly affects the price of the average mortgage across the old European Union.
In a survey of 55 financial institutions by Dow Jones Newswires, all expected the rate increase to go forward Thursday. Of those, 34 expected the rate to reach 4 percent by June.
Inflation in the 13 euro nations was estimated at 1.8 percent for February, according to EU data.
That was unchanged from January, and below the European Central Bank's just-under 2 percent guideline. Some saw it as news that could hamper the case for a rise in interest rates.
But the latest rise - bringing interest rates to their highest point since 2001 in Spain – was designed to keep down inflation.
[Copyright EFE with Expatica]
Subject: Spanish news