Another good news for loan holders

Soon you will be able to breathe with home loans.

« The amount of EUR 100,000 for a loan if he paid EUR 590 at peak times has already fallen to EUR 470 for this minute, » said Tadas Povilauskas, economist at SEB Bank.

The ECB is not hesitant – for the seventh time, the basic interest rates have been cut. This time, all three of the three percentage points were cut.

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« The most important factor is the price stability, so the monetary policy is implemented for this purpose. Price stability is defined as 2 % in the average period and is very purposefully approaching, » said Gediminas Šimkus, Chairman of the Board of the Bank of Lithuania.

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Economists are convinced that the European focus is changing – no need to fear price growth. It is now scary that the economy itself will no longer grow into a trade war with America.

« We see that the uncertainty of trade policy, due to threats to growth, the ECB changes its focus slightly, » said Vytenis Šimkus, an investment strategist at Swedbank.

« The high escalation of global trade voltage and associated uncertainty is likely to slow down the growth of the euro area and stop exports. This can reduce investment and consumption, » ECB President Christine Lagarde explained.

Cheaper lending will unlock your hands and to look for markets for companies and expand where duties are not smelled.

This is good news for those with loans. More money is left in your pocket, more can be spent on saving or consumption.

« Business, when making an investment decision, wants and needs to know how it will be. As long as they have no certainty, the investment does not do. Here is a specific example – the investment stopped, » said G. Šimkus.

The next European banking meeting will take place in seven weeks – in early June and it can bring another good news.

« Monetary policy will be softer than we could have expected, » stressed V. Šimkus.

And the forecast of markets and economists is that this year there will be three more interest cuttings until the deposit rate is reduced from 2.25 to 1.5 percent. And Euribor is decreasing even faster.

« Euribor will decrease below 2 % in the coming weeks. The probability is very high, which has a positive impact on the real estate market, » stressed T. Povilauskas.

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« This is the good news for those with loans. More money in your pocket can be spent on saving or consumption. Perhaps an investment decision, which seemed to be not paying off before, » said the chairman of the Board of the Bank of Lithuania.

New interest changes will come into force on April 23.