2023-12-06 14:03:27
The Belgian long-term interest rate settled at around 2.84% on Wednesday, its lowest level since March this year. Rates have been falling for some time, which should make mortgages less expensive.
At the start of October, the Belgian 10-year interest rate was still 3.6%, its highest level in more than 11 years. But since the end of November, the trend has been downward. Investors seem to believe that central banks no longer need to raise interest rates to deal with inflation, which has fallen sharply. More and more of them are even anticipating a drop in interest rates in the spring of next year.
This thesis was fueled on Tuesday by the statements of Isabel Schnabel, member of the Executive Board of the European Central Bank (ECB), during an interview with the Archyde.com news agency. In the interview, the German, seen as a supporter of tight monetary policy, said a further rise in interest rates by the ECB had become “rather unlikely” now that inflation had fallen “significantly”. outstanding”.
Ms. Schnabel, however, did not specify if and when the ECB will lower its rates next year.
The fall in interest rates is good news for the Public Treasury, which must raise billions of euros each year on the financial markets. Even real estate loans, which are linked to Belgian OLOs (linear bonds), theoretically become less expensive when interest rates fall. Finally, stocks also benefit from falling interest rates.
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