With even lower costs will borrow borrowers after the new interest rates by ECBby 0.25 of the unit, expected today.
The main interest rate is expected to be 2%, levels at 2022, and it is open to even up to 1.50% by the end of the year, if the US war launched is a deeper blow to the growth of the eurozone. It is certain that inflation in the eurozone inflation (at 1.9% in May, below the 2% target), allows another interest rates from the ECB to 1.75% in September.
The environment is further favorable to reducing the borrowing costs of borrowers with loans at floating rate and at the same time, it brings the fixed interest rates. Loan borrowers at a floating rate had seen the cost of their monthly traits double from December 2022 to September 2023, with the basic interest rate rising from 2% to 4%.
The sharp and continuous rise of interest rates began substantially on April 2, 2022, when the ECB raised the basic interest rate of the euro to 1.50% from 0.75% (meeting 14/9/2022). Earlier, the euro interest rate was at 0%(meeting 27/7/2022), remaining negative, at – 0.50%, from September 18, 2019. From April 2022 to September 2023, the euro interest rate was dropped to 4%. The declining march began, with reductions by 0.25 of the unit each time, in June 2024 and until the last meeting of the ECB on April 23, 2025, the euro rate fell to 2.25%.
Interest rates automatically pass on all loans at a floating rate, reducing the monthly installments proportionally.
According to figures announced yesterday by the BoG for April, the average weighted interest rate of all new loans to households and businesses stands at 4.80%.
In particular, the average interest rate on consumer loans without a specified duration (category including credit card loans, open loans and over -running accounts) decreased by 8 basis points and stood at 14.71%.
The average interest rate on consumer loans with a specific duration and a floating rate decreased by 11 basis points and stood at 11.43%, while the average interest rate on floating rate loans remained almost unchanged at 3.65%.
The average interest rate on business loans without a specified duration decreased by 27 basis points and stood at 4.92%. The corresponding interest rate on business loans decreased by 5 basis points and stood at 6.99%.
The average interest rate on new business loans with a specific duration and a floating rate increased by 3 basis points and stood at 4.16%. The average interest rate on the expiry loans at a floating rate to SMEs (SMEs) remained almost unchanged at 4.47%.