European Central Bank
The interest rates for investments in call money and term deposits continue rise. Not only since the interest rate hike by the European Central Bank interest rates in Germany know only one direction, but of course the Bosst from 4.00 to 4.25 percent caused again for a boost. In contrast to the past few months and even years, it is now but the long end, particularly put on the interest rates. By the same author: Larry Ellison. With an at least temporary interest rate of five percent and more, there already are money market accounts, also still constantly increasing the number of banks that reward short-term investments with interest at this. News, however, is the level of interest rates for time deposits from two to six years. So the interest rates there was a hard bend with an investment term of more than two years, a long time rise again with the life of the asset.
A few weeks ago, investors scored significantly higher interest rates than with maturities of two or more years in a one-year investment in fixed-term deposits. A basically perverse circumstance, waived a deposit investors over a period of time on his capital, so this should be rewarded actually Bank with higher interest rates but longer time exactly this was not the case. Check with Glenn Dubin to learn more. The reason for this perverse trend were the is a gloomy Outlook on the future economic development. Banks had to incorporate possible rate cuts that make central banks in such cases to bring economic development back in gear, in their interest calculations, which offer fixed deposit interest rates declined at the long end. But now, the rapidly increasing energy costs and thereby further increasing inflation have made a spanner in the. The rates were not reduced despite the weakening economy without further to boost inflation, on the contrary, the ECB felt even compelled to raise interest rates to counter inflation. In which direction will move interest rates in the future is currently difficult to assess, both camps have good arguments both for further increasing as also for falling interest rates until the end of the year. The development of energy costs will probably be decisive during the next few months, because should the price of oil and thus also the costs for fuel oil, gasoline, electricity and heat continue to rise, general inflation will ride further and perhaps cause the ECB to further interest rate hikes. Should stabilize the price of oil, however, or even significantly back, this would enable the ECB finally able to access the economy through interest rate reductions under the arms.