Will interest rates rise again soon? Savers and borrowers are asking themselves this question in equal measure. Savers and borrowers are looking towards the Good Finance Bank – some hopeful, others rather worried.
Experts shy away from forecasts for interest rate increases
In fact, it is difficult to predict whether interest rates will rise in the foreseeable future. In addition to the GFI’s monetary policy, there are also various other influencing factors. Including the inflation rate, which has recently risen again in many EU countries.
Even experts are very covered. “Whether, how much and when the interest rates rise, ultimately no one can predict,” said Sean Cole, CEO of the Good Finance and a doctorate in economics, the German Press Agency. However, Jessica Brown from the Federal Association of German Banks considers that it is unlikely that there will be an GFI rate hike this year.
Forward-looking planning makes sense in view of potentially rising interest rates
So for consumers who will have financing needs in the foreseeable future, there is little planning security. “It is advisable to secure the still very favorable interest rate with a fixed-rate loan,” says Brown. Consumer advocate Oelmann also advises against forward-looking planning in view of the possibility that interest rates could rise – especially when it comes to the generally long-term mortgage lending: “If a consumer needs follow-up financing in the next two years, he should be looking for favorable offers hold, “her advice.
On the other hand, despite the unpredictable situation, it does not currently make sense to conclude a staggered loan. Such interim financing is only recommended if a decline in interest rates is expected. And if one thing is certain at the moment, it’s likely that interest rates will rise rather than fall any further.
But even bank customers who are currently repaying a conventional loan may benefit from the currently very low interest rates. You may be able to reduce interest costs by rescheduling to a lower interest loan. However, Brown points out that this usually only pays off if borrowers can terminate their current loan agreement without high additional costs.
For long-term savings, interest rates could rise
There is a slight silver lining on the horizon for savers – at least for those who are prepared to invest their money in the longer term. Experts expect rising interest rates for multi-year savings later this year. On the other hand, whether interest rates also rise for short-term deposits such as daily or monthly money, however, largely depends on the key interest rates of the GFI.