ECB Rate Hike Seen As Priced In, But Spring Increase May Still Hit Loan Payments

The European Central Bank (ECB) has raised its interest rate to 2.5 percent, and markets are expecting further hikes this year.

According to Rain Leesi, head of investments at Avaron, the next rate hike is considered priced in and should not raise loan payments immediately.

The six-month Euribor, which affects most Estonians' loan payments, has already increased to 2.8 percent, matching market expectations for year-end.

However, Leesi notes that if Euribor rises by half a percentage point, monthly loan payments would increase by €30-45 on a €100,000 or €150,000 loan balance.