Anyone who raised a loan of any kind in 2016 benefited from the historically low interest rates, which ultimately resulted in a significant reduction in credit rates. Anyone who carried out a detailed credit comparison of all eligible loan offers here could legitimately see themselves as winners of the ECB’s policy. Now, the year 2016 is drawing to a close and the question arises as to whether this interest rate level for loans will continue to be the same in 2017. This question has now been answered with a rather clear statement at the last meeting of the European Central Bank (ECB) >> “The Governing Council continues to assume that ECB policy rates will last for a longer period and well past the end of the bond purchase program stay at the current level or lower “, the official statement says.
The monetary authorities around head of ECB Draghi have therefore not promised a change in the monetary policy course, which means in plain language: The interest on loans remain in 2017 for the consumer (for the time being) at a comparably low level. Consumers can benefit from this statement, in particular consumers who are planning larger, credit-financed purchases for the next year. Especially if the repayment terms should be longer. So, if you borrow a long-term loan next year and use the low interest rate phase to simultaneously lock in this low interest rate over a longer period of time, you should save a considerable amount of money. In addition, you are so well prepared against any yet rising interest rates.
As positive as this last ECB decision this year is for the group of potential borrowers, so negative is the prospect for savers. Because the decision of Mario Draghi to continue to follow the zero interest rate policy also means that hardly any interest is payable on savings deposits of any kind. Parking money on overnight money and / or on time deposit accounts is unlikely to be worthwhile given the low returns. In addition, there is a risk that the corresponding deposits due to the inflation rate rather give a “negative return”. Put in plain language: Yields from overnight money and / or term deposits are at risk of being “eaten up” by the inflation rate in 2017. Savers are certainly doing well to look again in 2017 for alternative and thus higher yielding investment forms. And so again shows: the one Freud, the other is suffering. In this case, as in 2016 in 2017, potential savers probably pay the price of the zero interest rate policy of the European Central Bank.