Bank loans with more interest

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Bank loans with more interest

The announcement by the United States Federal Reserve (FED) of a half-point rise in interest rates and the anticipation of more increases of this caliber to fight inflation will have effects on the costs of bank loans granted in El Salvador.

With this rise (which is double the one carried out last March) and after two years close to zero to alleviate the impact of the covid-19 pandemic on the economy, the official interest rate of the largest economy in the world The world falls between 0.75% and 1%.

Additionally, after the two-day meeting of the Board of Governors of the Federal Reserve system, the president of the institution, Jerome Powell, also indicated that “additional increases of 50 basis points should be on the table” in the next meetings. of the organism.

However, the head of the central bank of the United States pointed out that, for the moment, they are not contemplating increases of 0.75 or a whole point after the largest increase for more than two decades.

Rafael Lemus, economic analyst, explains that this increase was something already expected and what will happen soon is that the interest rates of the local financial system will rise for all operations, both loans and deposits, because “the cost of money has risen in general “.

“In the case of El Salvador, because it deals with dollars, it is what will affect business or consumer loans, but it favors those who have savings deposits,” says Lemus.

When looking at the reference rate of the Central Reserve Bank (BCR), it is evident that rates have been adjusting and it is expected that the new increase should be, at least, to the same extent as the FED’s increase of half a percentage point.

Until today, the last time the US central bank had announced a half-point rate hike was in 2000.

The main objective of the measure is to mitigate the high rate of inflation, which last March stood at 8.5%, the highest recorded since 1981.

Next Wednesday, May 11, the inflation data corresponding to the month of April will be known, which analysts expect to be equal to or even higher than that of March.

The next meeting of the Board of Governors of the FED will be on June 14 and 15.

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