Belgian long-term interest rates stood at 1.83% on Thursday, the highest level since 2014. This is bad news for public finances, but also for individuals who want to borrow money. at the bank. The interest rate on real estate loans is linked to linear government bonds (OLOs) and therefore taking out a mortgage loan has become more expensive in recent months.
To explain the rise in interest rates, analysts refer to galloping inflation. The latter pushes central banks to stop their bond purchases and to raise interest rates. The US central bank has already started to do so at the beginning of the year, the European Central Bank is expected to raise its key rate in July for the first time in years. In the financial markets, the effect is already visible: long-term interest rates are rising worldwide.
In Belgium, the ten-year interest rate now exceeds 1.8%. This remains a relatively low rate from a broader historical perspective. But the increase has been rapid in recent months: the rate barely exceeded one percent in March. At the end of 2020, Belgian long-term rates were even negative.