This new decrease, after a slightly upward path over the last five months, has a lot to do with the possibility that the European Central Bank (ECB) will have to further expand its monetary stimuli to contain the economic impact resulting from the outbreak of the coronavirus, according to financial sources.
But the truth is that the possibility of increasing financial stimuli was already being considered before the spread of the virus in Europe, and was more related to the downward revisions of the IMF and ECB regarding global growth. Simone Colombelli, Director of Mortgages at iahorro.com, points out that the ECB’s decisions have to be considered in the current economic context: “All reports point to a standstill in the real estate sector and a recession. What’s more, we have the decreases on the stock markets and the effect of the coronavirus in many countries. This scenario favours the continuation of Euribor in negative territory, at least for the rest of this year”.
