After closing 2017 with a new historical low, the Euribor will continue negative this year after more than 20 consecutive months with this trend. Moreover, according to a survey conducted by Bloomberg on the evolution of the Euribor, among investment banks, it is not foreseen that it will enter positive until, at least, 2019 (in which ...

Euribor will continue negative in 2018

Euribor will continue negative in 2018

After closing 2017 with a new historical low, the Euribor will continue negative this year after more than 20 consecutive months with this trend.

Moreover, according to a survey conducted by Bloomberg on the evolution of the Euribor, among investment banks, it is not foreseen that it enters positive until, at least, 2019 (in which they estimate that it will be at 0% in the fourth quarter).

This downward behavior is due to monetary policies carried out by central banks in order to revive the economy, but the question that arises now is how long will this context be maintained. In principle the forecast is that the Euribor will continue with negative values ​​during this year .

According to the ECB (European Central Bank), it will not be until 2020 when inflation approaches the 2%, the objective of all central banks, and expects that 1.7% will be reached by then.

The AHE (Spanish Mortgage Association) believes that " According to the behavior of inflation and of the economy in the Eurozone, it is to be expected that the monetary policy promoted by the ECB will reverse the downward trend in rates in the near future and with that start a smooth escalation ".

Regarding mortgages, banks in Spain have reduced the rates on mortgages at a fixed rate in order to sell more this type of loan and those who are paying a variable rate mortgage, have the peace of mind that no abrupt changes are expected in the short term.

However, the evolution of the Euribor also affected a to the profitability of bank deposits. Currently, performance remains stuck at historical lows.

RELATED NEWS

The Euribor closes 2017 with a new historical minimum

The Community of Madrid has announc...
The Community of Madrid has announced important tax reductions

The Madrid government recently announced a reduction of income tax and other taxes The Government will lower the IRPF of Madrid from 19% to 18.5% and in the case of low incomes the decrease will be more noticeable: the minimum rate will be at 9%, with what will be the lowest in the whole country. As well …...

Bedrooms: 5 decoration tips
Bedrooms: 5 decoration tips

Previously, we talked about Home Staging as a technique for optimizing housing for its presentation. In this article, we will focus on bedroom decoration through some guidelines, but let's start with a key question that is the basis of all of them: what should a bedroom transmit? The answer is very specific: comfort, ......

Real estate marketing video
Real estate marketing video

A short time ago we talked about the advantages of creating a real estate Youtube channel. One of the tips that was discussed was that the channel could be opened by publishing a trailer or advertisement of the company itself. However, this is only the beginning. The next step is to keep the channel active and get it out ......

Types of lease contracts according...
Types of rental contracts by duration

There are different types of rental contracts depending on the duration of the same and each of them has specific characteristics. In this way, we can find three models: Lease of housing for habitual residence. Seasonal lease. Lease for tourist use. The owners must know the properties of each one to guarantee ......