The President of the Republic said this Friday that he was concerned about rising interest rates on home loans, which have reached 1.2 million families, saying the increase is “no small” for people on low incomes.
“What worries me is that no matter how low the interest on a home loan is, it affects a million and 200 thousand households, and obviously it can be a small amount if the installment is small, but 50, 60, 80 or 100 euros is not [uma quantia] so little for people with low incomes,” said the President of the Republic, Marcelo Rebelo de Sousa.
On the sidelines of a ceremony marking the 50th anniversary of the Solverde Group, Marcelo Rebelo de Sousa promised more comment when he receives a government letter approved Thursday by the Council of Ministers that sets out measures to monitor and mitigate labor rate increases in home loan contracts.
Asked about the interest rate hike confirmed on Tuesday by the European Central Bank (ECB), the head of state said he was not discussing the “basic principles” of monetary policy, noting that “the decision is made by the ECB” and that “the citizens of the banks today do not have autonomy”. “.
“Inflation started to rise from the beginning of the year and made a jump because of the war, from March, and there were two possible paths: a delay and a sudden strong increase. The European Central Bank did not want to follow the first path, he wanted to wait until the summer, realizing that he was not going to raise interest rates. Then when they went up, they had to go up from eight to 80,” said Marcelo Rebelo de Souza.
And he added: “Perhaps the first would have been preferable, but since the European Central Bank took over, the second followed.”
Also, when asked about the difference in the views of the government and the Governor of Banco de Portugal on this issue, the President of the Republic stressed that “the governor thinks the same way as the ECB thinks” and that the government, “like other politicians, would prefer something more natural”, meaning a more gradual rise in interest rates.
“Now is not the time to cry over spilled milk. The reality is, let’s see how to deal with this reality,” he said, adding that “only a day later you will know whether it was worth starting earlier.” [a subida das taxas de juro] and spent it differently, or if it had to be so, wait and do what was done.”
Author: Lusa
Source: CM Jornal
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