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All eyes are on the anticipated inflation figures that will be announced today. These announcements will reveal how much prices have risen and how close we are to the official Central Bank target of 2%. They will also determine whether interest rate reductions, which could make mortgage loans cheaper, can begin as early as June.
Current mortgage holders, those in search of real estate, financial experts, and other debt holders have been eagerly awaiting the timing of this year’s first Central Bank interest rate cut. This cut is expected to occur within the next month.
Central Bank Deputy Governor Mr. Broadbent stated that the declining inflation rate would lead to lower interest rates over the summer. Additionally, he emphasized that spending, pricing, and wage increases must be closely monitored over the next two years to prevent a resurgence of inflation.
Leading financial consultancy firm Capital Economics has indicated, based on all data, that there is a 57% chance that the Central Bank interest rate, currently at 5.25%, will be reduced next month. This is expected to bring renewed vitality to the long-stagnant real estate market.
The firm also suggested that by the end of the year, the Central Bank interest rate could be around 3%, contributing to an increase in the stock prices of construction companies.
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