ECB Hikes Interest Rates Again, Targets Inflation at 2%

The European Central Bank (ECB) has raised interest rates for the second time this year. On Thursday, they decided to increase the deposit rate by 25 basis points, bringing it to 2.5%. This move follows a similar hike in June and is aimed at tackling rising inflation.

Eurozone inflation currently stands at 3.3%, driven mainly by increasing energy prices. The ECB wants to prevent this shock from lasting and putting further pressure on the prices of goods and services.

For Portuguese households with variable-rate mortgages, this decision may lead to higher monthly payments, although the impact will depend on various factors such as Euribor, the spread, outstanding principal, and loan review date.