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Wednesday, May 25, 2022
HomeLatest NewsCalvinho warns ahead of rate hike: 'Families are ready for it'

Calvinho warns ahead of rate hike: ‘Families are ready for it’

Government Vice President and Minister of Economy and Digital Transformation Nadia Calvinho said this Thursday that both the executive branch and companies and families are in a “good position” to face interest rate increases from the European Central Bank (ECB). ). This was pointed out by Calvinho during an interview with RNE’s “Las Mañanas” following the US Federal Reserve’s (Fed) announcement of a half-point rate hike, the biggest increase in more than two decades.

Asked about a possible increase in the Euribor rate and how it could affect families, she noted that “we are used to negative rates, but positive rates are normal”, and added that families already knew that this could happen. , and “They were preparing for it.”

He recalled that in March 2020, in response to the pandemic, 140 billion euros of public debt was issued, which is a “fundamental” decision, because it was possible to save employment, wages and family income, because they now have a “mattress and they are in a good position to face the challenges that are coming.

With regard to public debt, the minister insisted that the government should prepare “for a gradual increase in rates” and explained that these years of negative rates were used “to improve the financing conditions of the public sector.” “We have public debt with a maturity of more than eight years, a very long term. We have the cost of interest rates, which we have refinanced with very low interest rates, and this gives us the opportunity to cope well with this progressive increase in interest rates by the European Central Bank,” said Nadia Calvinho.

The senior vice president also explained that the forecasts included in the stability program “take into account the average rates of debt issued, that which is issued, that which is in circulation, and that which we are going to issue.” , and added that “although rates will rise in the coming months, the average interest rate on Spanish public debt will continue to fall.” In his opinion, these calculations “are very balanced with the reality of the debt that is in circulation.” The minister wanted to show that the executive branch has done a good job, has been very prudent and has achieved very responsible financial management, so it has “the prospect of reducing the public deficit, which also gives us more room to further reduce debt.” .


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