This is how consumers will notice the ECB’s first rate cut in nine years.

The European Central Bank (ECB) decided this Thursday that six years of interest rate hikes must end, so announced a 25 basis point cut. So the types are placed in refinancing operations at 4.25%the deposit rate will drop to 3.75%, and the loan rate to 4.5%. But how does this affect consumers? laSexta includes three main consequences of this decision.

On the one hand, we find savings on mortgages that families will receive. In particular, we are talking about Euribor – the main benchmark index for household mortgages – this is at the end of this year and according to forecasts of a government agent, will be at the level of 3.3%and during 2025 it could fall to 2.5%.

Although it may seem that this problem only affects those who have mixed or variable rate mortgagewhich you can see savings of about 50 basis points which can reach between 400 and 500 euros per year, as will those who sign a fixed-rate contract in the coming months.

In turn, this relief from mortgage lending for households could lead to renewal of concession by banking institutionsas well as biggest sale. However, prices per square meter for this type of operation are also expected to rise further.

Likewise, and in the same spirit, loans of any type will also be renewed, which may lead to a war between banks to attract more customers. Be that as it may, this reduction in credit will make this market is moving againboth in the family sector and in the corporate sector.

In short, and as a third consequence, there is Economic recovery which is expected in various European countries, including Spain. Without going into detail, the ECB on Thursday expected gross domestic product (GDP) to grow 0.9% this year – representing an upward revision from previous forecasts – while it could rise further next year up to 1.4. %.

Even the International Monetary Fund (IMF) forecasts announced this Thursday also they revised upward the growth of the Spanish economy. “Growth is projected to reach 2.4% in 2024 and 2.1% in 2025, driven mainly by rising domestic demand,” the multilateral institution said.