👊 BCE BAJA TIPOS ⭕️ QUÉ HIPOTECA ES MEJOR AHORA ‼️

Summary

In this video, the speaker explains recent changes by the European Central Bank (ECB), focusing on the cut of 25 basis points to 3.5%. They delve into the three types of interest rates, with the deposit rate now becoming the key reference due to high liquidity. The speaker also discusses the potential for further interest rate cuts and shares insights on current banking trends, such as aggressive mortgage offers and government-backed loans. They emphasize the importance of understanding these shifts for better financial decision-making, while also highlighting the upcoming mortgage course that provides valuable advice on securing favorable conditions.

Takeaways

• 😀 The European Central Bank (ECB) cut its interest rate by 25 basis points to 3.5%, shifting its focus from the refinancing rate to the deposit rate as the key indicator for monetary policy.
• 😀 The deposit rate now plays a central role in the ECB's strategy, as it is a more suitable reference for evaluating liquidity conditions in the economy.
• 😀 The liquidity bubble in the banking sector influenced the ECB's decision to lower interest rates and adjust its reference rates for better control of inflation and market stability.
• 😀 Inflation in the Eurozone is stabilizing around 2.2%, which is very close to the ECB's target of 2%. This is partly due to moderated salary growth in the region.
• 😀 The ECB's rate adjustments are expected to lead to more aggressive mortgage offers from banks, especially with new government-backed loans (ICOs).
• 😀 Banks need approval from their boards and regulatory bodies before launching new mortgage offers, which means the public will not see these new rates immediately.
• 😀 The speaker strongly advises not to sign fixed-rate mortgages above 2.5% and recommends considering mixed-rate mortgages instead due to the falling interest rate trend.
• 😀 The ICO loans, guaranteed by the government, are expected to offer up to 80%, 90%, or even 95% loan-to-value (LTV), depending on the borrower's profile, with special conditions for those under 36 years old or those with children.
• 😀 The speaker emphasizes the importance of staying informed and vigilant when navigating mortgage options, encouraging their audience to follow updates on changing market conditions.
• 😀 A mortgage negotiation course is promoted as an essential tool to help individuals save money by better understanding and negotiating their mortgage conditions.

Q & A

What is the main reason the European Central Bank (ECB) reduced the interest rate by 25 basis points?

The ECB lowered the interest rate to 3.5% primarily due to abundant liquidity in the banking sector, aiming to reduce financing costs and address the liquidity bubble.

What is the new key reference rate that the ECB is using to evaluate monetary policy?

The ECB has shifted its main reference rate from the principal refinancing rate to the deposit rate, as it better reflects current economic conditions and liquidity.

Why did the ECB decide to use the deposit rate as the main reference rate?

The deposit rate was chosen because it is more indicative of the current liquidity situation in the banking sector, where a significant amount of funds is parked.

What are the three types of interest rates used by the ECB?

The ECB uses the deposit rate, the refinancing rate, and the marginal lending rate as its three key interest rates.

How has the LIBOR rate changed over the past month according to the speaker?

The LIBOR rate has dropped significantly from 3.5% to 2.92%, showing a notable decrease in borrowing costs.

What does the speaker mention about the potential future reduction of interest rates in October?

The speaker notes that ECB President Christine Lagarde has hinted at the possibility of another 25 basis point rate cut in October, but this is not guaranteed.

What impact could the reduction in the ECB's interest rate have on mortgage offers from banks?

The reduction is expected to lead banks to launch more aggressive mortgage offers, potentially at lower rates, as they respond to changes in financing costs.

What are the conditions under which the ICO (Institutional Credit Offer) would be available according to the script?

The ICO program is set to offer government-backed loans at 90-95% of the property's value for those with good profiles, with specific provisions for individuals under 36 years old and those with children.

What advice does the speaker give regarding mortgage agreements?

The speaker advises against signing fixed-rate mortgages above 2.5% and suggests opting for mixed-rate options if possible, given current market conditions.

What does the speaker say about inflation and its impact on ECB's future decisions?

The speaker highlights that inflation is stabilizing around 2.2%, close to the ECB's target of 2%, which could make further rate cuts more likely, though inflation in the services sector remains a concern.