The expected interest rate hike by the European Central Bank next week, from 2.25% to 2.50%, will create pressure on the cost of borrowing for businesses and households.
The 25-basis-point increase, which is now considered the most likely scenario, will be the second in 2026 and comes at a time when the cost of money has already begun to rise, both through bank interest rates and through the significant increase in yields in bond markets.
According to banking sources, concerns focus on new-mortgage interest rates, which have fallen significantly and are the category in which Greek interest rates have essentially converged with European ones.
Bank of Greece and ECB data published on Wednesday showed the average interest rate on new floating-rate mortgages stood at 3.53% in Greece in July, compared to 3.69% in the eurozone, even declining in Greece compared to June, when it rose in the eurozone. The same sources note that the majority of new mortgages are made at a fixed interest rate, which is even lower, so this particular category is considered one of the most vulnerable to the expected rise in the cost of money.
