Interest rate: what is it, and how does it impact your investments?

Interest rate: what is it, and how does it impact your investments?

One of the fundamental financial concepts that investors must understand is the interest rate. It is essential to understand how much you can earn or lose on investment over time. The interest rate can be defined as the ratio between the amounts paid or received at the end of a pre-agreed period. In other words,…

Why the financial markets are waiting for an interest rate signal

Why the financial markets are waiting for an interest rate signal

The pivotal point on the stock exchanges is monetary policy and the development of interest rates. A calming of the rise in interest rates is in sight – but is that enough for a price recovery on the stock market?   “Interest is the price of money,” says Niklas Helmreich, Germany head of asset manager Trive. This…

What the rate hike means in everyday life

What the rate hike means in everyday life

Never before has the ECB raised interest rates as much as it is today. It is questionable whether the monetary watchdogs will be able to curb record inflation quickly. Consumers will still feel the consequences clearly. It is a historic decision: the European Central Bank (ECB) has increased the key interest rate for the euro area by 0.75…

Rising producer prices: Inflation harbinger at a record high

Rising producer prices: Inflation harbinger at a record high

Manufacturers’ prices in the eurozone are rising faster than ever. This increases the pressure on the European Central Bank to raise interest rates very significantly in the coming week. Producer inflation in the eurozone has intensified. In July, producer prices rose by 37.9 percent compared to the same month last year, as the statistics office Eurostat…

Over nine percent Record inflation in the euro countries

Over nine percent Record inflation in the euro countries

The price increase in the euro currency area climbed to a record high in August. Goods and services rose in price by more than nine percent on average. Inflation in the eurozone passed the nine percent mark in August. Consumer prices in the 19 countries that use the euro as their currency climbed 9.1 percent over…

ECB raises interest rates: why the rate hike is just a start

ECB raises interest rates: why the rate hike is just a start

For the first time in more than a decade, the ECB has hiked interest rates again. What are the consequences? Why is that not enough for some experts? And why is Italy putting the central bank in a dilemma? It is a milestone: After more than a decade of loose monetary policy, the European Central Bank (ECB) has…