Rising interest rates and the impact on Europe's economy

Rising interest rates and the impact on Europe's economy

Wednesday, 19 April 2023

Funcas Europe

Hello Future is blue readers,

This week we are taking a closer look at the recent evolution of the Euribor, the key reference for the European financial markets, in terms of its impact on the banking sector.

Though short-term interest rates such as Euribor have followed a steep upward trend, long-term rates such as government bonds have tended to stabilize recently. In other words, the yield curve has narrowed, which may signal an expectation that central banks will snow down –or even stop-- their policy of monetary tightening.

This is the starting point of this week's podcast episode, featuring Alice Faibishenko, Senior Funcas Advisor. Alice is sharing with our host, Carlos Carnicero Urabayen, some of the key insights that the new Spanish and International Economic & Financial Outlook (SEFO) report brings to the table. More info about the podcast and the report below.

At the end of this newsletter you can access our recommended readings for the week.

New podcast episode available!

In today's Future is Blue podcast episode we cover the following key aspects related to rising interest rates and its impact on Europe's economy:

  • Recent trends in Euribor and how this is affecting financial markets. 
  • How this is impacting the housing market
  • Rising interest rates and non performing loans
  • Spain's labor market performance

Don't miss the latest SEFO report

The second SEFO, Funcas flagship economic report, of 2023 comes with plenty of ideas and data about some topics that are hot on the economic agenda. Topics include the far reaching implications of a rising Euribor, the euro yield curve evolution and real long term rates, European and US banks: inflexion point in their relative performance, inter alia.

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What we are reading

Five proposals for enforceable EU fiscal rules
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Banks crisis looks short but lessons must be more enduring
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Mobilising transition finance will require credible corporate climate plans
Many jurisdictions now require companies to demonstrate ‘climate alignment’; investors need tools to evaluate whether transition plans are credible.

Why 2023 might just be a turning point for climate action
Policy and regulatory breakthroughs are coming together — but will government and business deliver?

Have a nice week

Raymond Torres
Funcas Europe Director


Think tank dedicado a la investigación económica y social

C/ Caballero de Gracia, 28 | 28013 Madrid, España
+34 91 596 57 18 | funcas@funcas.es
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