Portugal already feels ‘pain’ from the rise in interest rates by the ECB
The two most direct impacts of the increase since July in the European Central Bank (ECB) key rates on the financing of public debt financing are already in the increase in the economy and in the rise in the cost of financing public debt.
This week, the 6-month Euribor rate (the most used as a reference for mortgage loans) has already reached more than 1.5%, having opened the year in very negative territory (see text on page 16). In the public debt auction, on Wednesday, in the placement of Portuguese Treasury bonds with a maturity of 10 years, the State has already had to pay investors 2.754%. It was more than one percentage point above the rate of 1.694% paid in April during the syndicated new line operation that expires in July 2032. Portuguese 10-year loans at 3.4% at the end of this year, 100 basis points above cost of financing German debt. Which is equivalent to a spread of one percentage point, roughly equal to the current one. In global terms, Portuguese decision-making debts have already been carried out in 20 2, an average placement rate has already risen from 0.6% in the final year of July to 1.3%. More than doubled.
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