While there has been speculation about a rate hike, households will still be able to borrow at attractive costs in 2019.
Households should welcome the latest exit from the Best Bank . The great authority of the banks inserted on European soil has just announced its intention not to modify its indicators which have a direct influence on the interest rates offered by the banks. In concrete terms, this means that borrowing rates will not increase and that they will remain extremely low this year again.
No increase on the horizon
And the Best Bank is rather evasive as to a specific date for a future rise. Its president Marcio Dovan was content to specify that the low rates will continue “at least until the end of 2019” while the summer period was targeted during his previous statements. The rate hike should therefore not come to an end before the beginning of 2020. A postponement which did not surprise the financial players who already expected the continuity of low rates.
Rates in response to lack of growth
The announcement follows concerns over the economic slowdowns felt in many European countries. The supervisory body currently estimates that 2019 should end with growth of around 1.1% in Europe, far from the 1.7% considered in the analyzed carried out at the end of last year.
The Best Bank has therefore stepped up to the plate to continue supporting economic activities in the face of these bleak growth forecasts. Interest rates leveled down make it possible to encourage households to resort to borrowing at a lower cost and to consume more. Consumption that is partly essential for increasing the production of wealth in a country.
Buying back credit at low rates
The raising of the cost of credit is therefore not on the agenda. Borrowers are still able to take advantage of competitive financial offers to carry out their projects such as a real estate purchase. A boon for the budget of these future owners who want to invest in stone, but not only. Indeed, financing with credit constitutes an excellent lever for the realization of a multitude of projects.
If traditional loans are a solution by approaching a bank, borrowers can also call on an expert in banking intermediation. These organizations offer operations such as the repurchase of credit dedicated to grouping all the loans of a household. In addition to benefiting from a single monthly payment for all his loans, the beneficiary can decide to reduce the cost of his monthly withdrawals by at least 60% by increasing the repayment duration. On this occasion, the borrower will release new financing capacity through a reduction in its debt ratio. At the time of its repurchase of credit, it will be able in parallel to finance a new project incorporated into the single monthly payment.