Government support will respond to the increase in housing credits

The parliamentary leader of the PS pointed out this Thursday (July 21, 2022) that the new social and business support projected by the Government for September will respond to the impact resulting from the increase in interest rates, especially on housing credits.

Before journalists, Eurico Brilhante Dias began by distinguishing the ECB´s reference rates and euribor rates formed in the interbank market, which are directly related, for example, to housing credits.

This position was transmitted by Eurico Brilhante Dias at a press conference at the end of the meeting of the Ps Parliamentary Group, after being confronted with the decision of the European Central Bank (ECB) to increase its three key interest rates by 50 basis points - the first rise in 11 years, with the aim of halting inflation.

"It must be said that some of this movement of increase in reference rates by the ECB has already been accommodated by the interbank rates itself. Therefore, there is no foreseeable mechanical effect between the increase in the ECB´s reference rates and an effect on the provision of people´s homes," said the chairman of the Ps Parliamentary Group.

For Eurico Brilhante Dias, interest rates on home loans have been increasing, although "to still particularly low values when compared to history." "But this will have an effect on the Portuguese stock market, and will most likely have already in the second half. This greatest effect already in the second half will occur almost simultaneously with the set of measures that the Government will present in September", he said.

"Government is very attentive to the inflationary process"
In this sense, the leader of the Socialist caucus considered that "the Government is very attentive to the inflationary process, which in this case will also have some impact on housing credit".

Regarding the new measures to support families to cope with inflation, which the Prime Minister, António Costa, announced on Wednesday that will be taken in September, the parliamentary leader of the PS said that, from a budgetary point of view, his bench will have four priorities:

• Tax justice and combating tax evasion;
• I support the younger and middle class;
• Stimulating business development;
• Package more focused on social policies and territorial cohesion.

"There are four areas that were very important in the State Budget for 2022. The PS is not expected to make major budgetary changes, but we want to make our mark. These are our four priority areas and the signalling we are making has to do with the political brand of a political force oriented by socialism, by social democracy, committed to fiscal, social and territorial justice", he added.

Source: Idealista.pt