The financial markets are left cold by the historic interest rate hike


Dhe European stock exchanges didn't even bother to shrug their shoulders at the historic interest rate decision European Central Bank (ECB) to respond. After the largest increase in the main refinancing rate of the ECB by 0.75 percentage points to 1.25 percent, the Dax was around 0.5 percent in the red as before the interest rate decision. Only when ECB President Christine Lagarde expressed skepticism about economic development in the winter and spoke of stagnation in the afternoon did the Dax briefly drop 1.5 percent. At the end of trading, it was down one per thousand to 12,904 points.

The movement of the euro exchange rate also took place in the third and fourth decimal place. About 1.0004 dollars had to be paid for one euro, later it was slightly in the red at 0.9970 dollars. The yield on federal bonds with a term of ten years rose somewhat more visibly from 1.58 to more than 1.7 percent for a short time. Italian government bonds lost a similar amount of value. The return rose to almost 4 percent.

With its rate hike, the ECB met the expectations of market participants. Inflation rates in the euro zone, which had risen to more than 9 percent, had strengthened the view that a decisive interest rate hike of 75 basis points was to be expected. The deposit rate was also increased by 0.75 percentage points to 0.75 percent. Until the July interest rate hike by the ECB, it was minus 0.5 percent and was decisive for the numerous negative interest rates charged by banks and savings banks on their customers' deposits. In the coming weeks and months, many customers are likely to see positive interest rates on their savings for the first time in years.

Construction loans are becoming more expensive

What pleases savers is unfortunate for borrowers. The credit broker Interhyp expressed the expectation that after their summer increase from 2.7 to 3.2 percent for loans with a term of ten years, construction interest rates should continue to climb to 3.5 percent. Michael Neuman, CEO of the credit broker Dr. Klein, said with a view to the drastically increased construction costs: "For average earners without any significant wealth background, it is becoming increasingly difficult to finance your own property."



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