The European Central Bank (ECB) decided at its June 11 monetary policy meeting to raise key interest rates by 0.25 percentage points. This decision, the first since September 2023, was expected and could have a significant impact on Portuguese household budgets.
DECO PROteste warned that the interest rate hike will consolidate the increase in mortgage payments and could alter the conditions for accessing housing credit. Eurozone inflation, which accelerated again to 3.2% in June, exceeding the ECB's 2% target, motivated this decision.
For Portuguese citizens, the main effect of this measure will be seen in the evolution of the Euribor, the benchmark used in most variable-rate housing loans. According to DECO estimates, a sustained rise in Euribor could lead to a gradual increase in payments for contracts reviewed in the second half of the year. For instance, on a €150,000 loan over 30 years, the payment could rise by €21.16.
