ECB, Lagarde announces the cutting of rates at 2.25%: the alarm on the risks of the commercial war and duties

The ECB cuts rates from 2.5 to 2.25% and warns on the risks of the commercial war for the economy. The European Central Bank unanimously decided to reduce the cost of money by another 0.25%, proceeding with the seventh scissored since June 2024. « The disinflation process is well started, « noticed the Board of Directors, and inflation goes towards the medium -term target of 2%. « Wage growth is moderate and profits are partially absorbing the impact of the high growth of wages on inflation ». Here, the practical effects of the cutting of ECB rates: what changes for families with mortgages, actions, btp and personal loans, the complete article.

The risks of the commercial war

The ECB also underlined the uncertainty linked to the outcome of the war of duties unleashed by Trump. «The economy of the euro area has developed a certain resilience to global shocks but The growth prospects have deteriorated due to the increase in commercial tensions», He warned. « The increase in uncertainty is probably destined to reduce trust between families and businessesand the adverse and volatile reaction of the markets to commercial tensions is probably intended to have a restrictive effect on financing conditions»He continued. « These factors could further burden the economic prospects of the euro area ».

The next steps

These unknowns could push the ECB to new cuts in the coming months. « The ECB maintains its options open regarding the future trend of interest rates, » underlines Dean Turner, Chief Eurozone Economist Ubs Global Wealth Management. « We expect a further cutting of the rates in June, with the possibility of further loosening during the year, depending on the progress of commercial negotiations « . However, the ECB president Christine Lagarde remarked that the duties could have contradictory effects. « The descent of energy prices and the appreciation of the euro could reduce inflation« He said, also citing the deflationary effect of the possible redirection of the exports of some countries, including China, from the United States to Europe. « On the other hand, the fragmentation of the supply chains and the increase in defense spending and infrastructure could contribute to an increase in prices».

The impact on mortgages

According to the simulations of the Fabi, meanwhile, The new cut of the cost of money Determined today by the ECB, from 2.50% to 2.25%, it will favor the reduction of interest rates practiced on mortgages from banks to families. A significant impact on mortgages installmentswith savings that vary on the basis of the funded amount and the duration of the loan. The average fixed rate could soon arrive around 2.55%, much more contained than the 4% practiced up to about a year ago. The effect of lowering rates on monthly installments is progressively greater as to increase the duration of the mortgage: If on a ten -year loan the savings varies between 37 and 182 euros, according to the amount financed, on a 30 -year mortgage the impact is decidedly stronger, reaching over 200 euros per month.