European Central Bank raises interest rates to 2.5 percent

The European Central Bank has raised its base interest rate by 0.25 percentage points to 2.5 percent in an effort to curb rising inflation.

This decision increases the risk of higher monthly installments for borrowers with variable interest rate loans linked to EURIBOR. While those with fixed-rate contracts remain unaffected, the six-month EURIBOR has already risen from 2.1 percent at the start of the year to 2.80 percent.

University professor Sinisha Naumoski notes that this restrictive monetary policy may lead to a postponement of corporate investments due to more expensive financing. The policy shifts are also expected to influence local monetary authorities and banking credit offerings.