Analysts claim interest rates will fall during the second quarter of 2008.

May 13, 2008

Inflation and the appreciation of the Euro would be the main reasons for such a fall.

Following interviews with over 300 analysts and businessmen, the Economic Board of the consulting firm PricewaterhouseCoopers (PWC) claims that the Central European Bank may lower interest rates, which are the governing factor for most mortgages, during the first quarter of the year in an attempt to contain inflation and appreciation of the Euro against the US Dollar.

Nine out of ten of the experts asked believe that the European Central Bank will make this reduction at some point over the next six months. Furthermore, 30% of the experts think that there will be a 0.5% rate cut.

All experts agree that a reduction to interest rates would revitalise the cooling down of the Euro Zone.

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