An increase in central bank interest rates will support the rise in prices of loans, especially mortgages. This follows from the reactions of the largest banks. As expected, the Bank Board of the Czech National Bank raised interest rates yesterday. The key interest rate, on which the interest rate on commercial loans is based, rose by 0.25 percentage point to 0.5 percent.
“We are closely monitoring the market situation and the reaction of individual entities to the current increase in CNB rates. It is possible that we will react to the latest developments in the mortgage market in the area of our mortgage offer,” said spokesman for Česká spořitelna Filip Hrubý. UniCredit Bank spokesman Petr Plocek assumes that the rate increase may have an impact on short-term loans, and does not expect a jump in long-term loans and consumer loans.
“At the moment, we are analyzing the decision, we are not planning an immediate change in rates,” said Komerční banka spokesman Michal Teubner. The interest rates on mortgage loans changed as of June 18, with the most used fixations rising by 0.2 of a point. According to spokeswoman Zuzana Filipová, Moneta Money Bank will react in a number of days, and will decide on rate adjustments on Thursday.
The increase in the CNB’s base rate is not such a significant news for mortgages, said Milan Voldřich, director of mortgages at Raiffeisenbank. More important, according to him, is that the price of long-term money on the market, ie those that directly affect mortgage prices, has risen by more than one percent since the end of last year. “And this is also the main reason why mortgages have started to rise in price and will continue to do so. The increase in CNB rates only gives a stamp on this trend and may slightly increase the rise in mortgage rates,” he added.
Air Bank is going against the flow, which will reduce mortgage interest rates by 0.1 percentage point from Friday, June 25. “For new mortgages, we will now offer an annual interest rate of 2.29 percent. The reduced interest rate applies to both new mortgages and mortgages transferred to us from another bank,” said Radek Perman, Head of Air Bank’s Mortgage Service.
Source: CTK
