ECB raises interest rates, but “deposits in Portugal feel little”

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Rates on new deposits are also rising in the eurozone, but at a “much slower” pace.

Despite theriseininterest rates by the European Central Bank (ECB), deposits in Portugal “feel little” this increase, according to a recent study carried out by Allianz Trade, shareholder of COSEC – Companhia de Seguro de Créditos and released this Wednesday.

“Households in the Eurozone were among the economic players who lost out with negative interest rates. Although the rates for new deposits and loans for families are also rising, the pace compared with that being applied by central banks is much slower,” according to a statement to which Notícias ao Minuto had access.

The effects of the ECB’s interest rate hike “have been felt in the various economic actors, as well as in the various economies, including Portugal.

“Analyzing whether the changes in interest rates have actually reached the economy, we realize that for households, the answer is yes and no. The weighted average interest rate on new loans has already climbed in some countries: the increase over 2022 (January to November) varies, ranging from 24 basis points in France, to 97 basis points in Germany. The average in the Eurozone is 58 basis points”, says Arne Holzhausen, Head of Insurance, Wealth and Trend Research at Allianz Trade, quoted in the same note.

Last week, ECB President Christine Lagarde reaffirmed in the European Parliament the institution’s intention to raise interest rates by 50 basis points at the March meeting.

Then, Fabio Panetta, a member of the ECB’s Executive Board, said in London that the central bank should “calibrate monetary policy” and make smaller interest rate increases as inflation in the eurozone falls.

Later, ECB chief economist Philip Lane said, also in London, that monetary policy should ensure that inflation falls to 2% in the eurozone and that its adjustment should be reviewed regularly based on updated data.

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