this Almost a billion euros already invested in Spanish households in banks. Specifically, 997,446 million at the end of July, 0.24% (2,464 million) compared to June, 5.7% more than the previous year (54,500 million) and 17% more than before Pandemic (144,200 million), according to data released this Friday by the Bank of Spain. Companies also increased: 6% per annum, 312 billion. And all while waiting for financial assets start paying interest In the heat of interest rate hikes as the European Central Bank (ECB) is trying to combat the inflationary spiral, due to liabilities in the coming months.
Spaniards tend to have conservative profile with your savings. The proof of this is that they have not stopped increasing the money they have accumulated in the banks in recent years, although they have received almost no returns. loss of purchasing power in relation to a slightly growing inflation. Thus, between 2009 and 2019, the CPI averaged 1.3% in the euro area. The average deposit rate in Spain, for its part, has been below this level since February 2015. In fact, below 1% since August of that year and below 0.1% since February 2020 In June, the latest data available stood at 0.04%.
with all end of grace deposit approaching. This has been accepted for months by major Spanish financial institutions preparing to repay debts, albeit gradually over time and limited in interest rates and customers, after the return of summer. And this was also highlighted in a recent report by the Bank of Spain: “It is predictable that financial institutions competing for funds will start making money. increase salary deposits in the coming months”.
affiliated with the ECB
The cost of responsibility closely linked to the price of money It is determined by the ECB. In July 2008, at the dawn of the previous crisis, the response rate was 4.25% and Spanish establishments paid an average of 4.2% to households on deposits in the context of tight liquidity following the ‘subprime’ mortgage boom in the United States. last year. From then on, the monetary authority began to cut rates to save the monetary union of the euro, and as a result, the fee for bank savings collapsed.
In March 2016, the official interest rate was reduced to 0%. Also, in June 2014, the ECB began charging banks instead of paying them to hold their money (known as the deposit facility, which reaches -0.5%). IT. Deposit payments have collapsed, and in practice it is basically impossible to get a fee for savings in this way for more than five years. this monetary policy tightening However, fighting the inflationary spiral will reverse this situation.
rising rates
The ECB increased interest rates by 0.5 percentage points at the end of July, the first increase in the price of money in 11 years, the largest increase in more than two decades, and double the expected. In addition, German Isabel Schnabel, one of the most influential members of the executive committee, announced last week that the monetary authority could approve a deal. Similar increase in September and at subsequent meetings extra walks.
The first consequence is that it no longer costs banks money to leave money in the ECB, so anticipating this move, stopped charging its commercial customers. They promised companies an average of 0.33% interest on their new deposits in June, were charged 0.09% in May and 0.24% at the start of the year. It is predicted that in September, the central bank will start paying institutions to hold their money and the sector will start making money with this money. incentive to pay to the depositors, respectively.