Rising interest rates and the impact on Europe's economy
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.
How concerning is the banking stress?
A few weeks ago we were discussing about the improved economic prospects for 2023 and the possibility to avoid a recession this year in the EU.
In the meantime, however, financial markets have entered a period of turbulence in the aftermath of the collapse of Silicon Valley Bank. To get a grasp of the economic impacts for Europe of this new shock, we have reached out to Iain Begg, Professor at LSE, who's joining our podcast show this week with Raymond Torres, Funcas Europe Director, and Carlos Carnicero Urabayen, our host. More details below.
Increases in Euribor and potential impact on mortgages and the Spanish economy
The rise in Euribor has cooled the housing market –transaction volumes have slowed and the price curve is beginning to bend. While at present the situation does not seem to pose a risk of a crisis for the Spanish economy, going forward, the evolution of employment will be key, as this is the main variable underpinning households’ ability to service their debts.
El euríbor y las hipotecas
El objetivo de este artículo es, en primer lugar, aportar una cuantificación recurriendo a datos desagregados a partir de fuentes oficiales.