The money in your checking account is at risk of losing value as inflation rises and won’t stop.
The European Central Bank continues to raise rates and as a result the Italian economic crisis is inexorably advancing.
The last few months of 2022 have seen increases in gas and electricity tariffs, food prices and mortgage rates. These, as announced by the Bank of Italy, rose to 3.23% in October; in September the rates were 2.65%.
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The negative consequences, as always, fall on the loans taken out above all by families. Furthermore, the loans with a variable rate which represent 40% of the total will cost more. It seems, however, that the rates for first home mortgages for the under 36s have not changed.
The rest of the beneficiaries of some funding according to Codacons could pay up to 1,800 euros more a year. More money that will add to the high inflation that is bringing the finances of bank and credit institution customers to their knees: whether they are individuals or companies.
The situation, however, could also continue in 2023 even if the beneficiaries of the loan could count on a series of rules, including the suspension of installments.
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Loans for home renovations have also increased but with average amounts and duration decreasing compared to previous years: 13,700 euros in 5.7 years.
The increase in interest rates for banks is a benefit on the capital side but not on the marginal side. Among other things, the ECB not only deals with rates but also with the return of liquidity which has been placed on the market in large quantities in recent years.
Here are the denied data reported since October 2022: bank loans have slowed down and settled at 3.4% (in the previous month it was 4%); on the other hand, loans to households increased by 4%.
Private sector bank deposits in October fell by 0.1% which represents the lowest value since 2021.
