European, Portugal Interest Rates Fall

  • 15 years ago
  • Uncategorized
The European Central Bank (ECB) followed the Bank of England and recently announced a half a percent interest rate cut. The Bank is attempting to help the economy of Europe and the EU with its fifth cut in the last six months. The base interest rate now stands at 1.5 percent, a record low.
This latest cut will help homeowners, who will see their interest rates cut and, as a result, lower payments. A 30 year mortgage of €150,000 will see cuts of as much as €250 less than six months or more ago, when the ECB’s interest rate stood at 4.25 percent. The Euribor three month index dropped to 1.757 percent and the six month rate fell to 1.869 percent recently.
Home owners with mortgages tied to the Euribor lending index will see their rates fall over the next six months, depending on their contract terms. The earliest effects will be seen in April.
Portuguese officials have been optimistic that the interest rate cuts will help consumers and the nation’s economy in 2009. The Governor of the Bank of Portugal said that “Those who keep their jobs in 2009 can look forward to greater earnings and even more buying power.”
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