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Housing loan. The installment plan could grow by more than 100 euros

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Housing loan.  The installment plan could grow by more than 100 euros

Again sound the alarm around a new increase in interest rates by the European Central Bank (ECB). This is the third ascent this year, and the meeting is scheduled for tomorrow. According to experts heard by i, everything indicates that the organization led by Christine Lagarde will once again choose the most pessimistic scenario: a 75 basis point increase. All to try and stop the escalation of inflation.


An increase in interest rates will affect Euribor rates, which will also rise, making credit more expensive, for example, by increasing monthly mortgage payments. A situation that will also have implications for those who are thinking about applying for a loan.


What does this mean? In an analysis by ComparaJá.pt for oi, for a property worth 125 thousand euros due in 33 years, if the installment in June 2020 was fixed at 383.11 euros per month, this value rose to 423.87 euros in July this year and for 432.09 euros in August. If you combine this installment with the predicted increase in interest rates, you will pay 481.27 euros in November. That is almost 50 euros more per month – and 100 more than two years ago.


For a property valued at €186,000 payable over the same period (33 years), if you paid €565.54 in June 2020, the installment rose to €578.77, the following year the value rose to €642.95 in August. With this increase in interest, he will pay 716.13 euros in installments in November. That is a monthly increase of 73.19 euros.


The scenario worsens for a house of the order of 275,000 euros. In June 2020, the contribution was set at 836.15 euros per month, in July this year this amount increased to 932.52 euros, and the next month to 950.50 euros. If this 0.75% increase occurs, the monthly payment in November will be 1058.80. After all, more than 108 euros per month.

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João Melu, director of the platform, recalls that “never in the history of banking have Euribor rates risen so much in such a short time, and the Portuguese have already begun to feel the exponential growth of loan premiums in their portfolios.”


Regarding the future and trends in banking, he guarantees that “it is difficult to predict what will happen, but everything indicates that interest rates will continue to rise.” In addition to this increase, one must count on “inflation in the economy and the constant increase in the prices of electricity and gas, which contribute very little to the financial well-being of the Portuguese.”


What to expect? Ricardo Evangeliste, senior analyst at ActivTrades, has a hard time predicting what the trend will be until the end of the year, but he reminds that the market expects the benchmark rate to reach 3% when the current up cycle ends in February. .


“The 75 basis point increase expected this Thursday will take that to 1.75%. Since we have three more monetary policy decisions before the end of February, the next increase could be either 0.75 or 0.5 or even 0.25%,” he tells our newspaper.


The official guarantees that the impact of the ECB interest rate hike will be felt on Euribor rates, which will also tend to rise, making credit more expensive. “Such a scenario would be negative for those paying mortgages and not opting for fixed rates,” he guarantees.


Enrique Tome, analyst at XTB, also believes that after this projected 0.75% hike this Thursday, the ECB should raise interest rates again by the end of the year, but this time by 0.50%. “But these are just forecasts and they are subject to change if inflation continues to show signs of resilience,” he analyzes.

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He adds: “With the increase in base rates, it is expected that all other rates will also increase, namely the Euribor rates. Portuguese who have floating rate mortgages (which is more than 90% of mortgages in Portugal) will be punished by increased bank fees.”


Paulo Rosa, economist at Banco Carregosa, is also betting on a 0.5% rise at the next meeting, but recalls that until then Euribor-related interest rates will reflect this expected rise for the evolution of the ECB’s monetary policy and related rates . , interest on your deposits.


“The 12-month Euribor is currently at 2.78% and ECB interest rates are expected to peak next summer at 2.84%. The monthly fee will only increase on the maturity date of his index. In the case of a three-month Euribor, the installment will be reviewed and the interest rate updated every quarter. In the six-month Euribor, every semester and in contracts whose index is 12 months, the review is only annual. The 6-month Euribor is 2.11% and the 3-month Euribor is 1.54%, in line with the ECB deposit interest rate outlook,” he stresses.


interest against inflation Enrique Tome recalls that raising interest rates is the most frequently used instrument of the banks to fight inflation. “By raising interest rates, central banks manage to cool economic activity, ultimately containing the effects of inflation.” He adds that “this is not the only option, but of all possible it is the least” aggressive “.


However, he acknowledges that the decision could jeopardize growth targets. “This is the price you have to pay to stop inflation: a decline in economic activity that ultimately hurts GDP.” However, he adds that these measures do not always lead to periods of deep recession.

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“Most of the time we see short periods of GDP contraction (recessions) that serve to balance prices in the economy. Despite everything, the economy is strong at the moment, and although banks have bet on a sharp increase in interest rates, there are still no concrete indicators that this increase could lead to a deep recession.


Ricardo Evangelista recalls that higher interest rates affect demand, which helps control price increases, but this is not enough. “Some of the inflation we’re feeling right now is supply-driven, especially in energy. It is not enough to raise interest rates alone, as exogenous factors also influence this phenomenon.”


But he warns: “Higher interest rates cause investment and consumption to decline, which also has a negative impact on employment.”


Paulo Rosa is more pessimistic, pointing to a scenario of stagflation similar to that which took place in the 1970s: “It is true that the war in Ukraine further accelerated energy inflation and worsened food prices, but in fact inflation in the Eurozone is becoming more widespread, and service prices have also followed this continuous rise in prices. The possible replacement of some purchasing power after a significant drop in household disposable income, namely by employees, also increases the likelihood of a wage/inflation spiral, increasing the likelihood of a stagflationary scenario.”







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Economy

Everything has been delivered. 10 Bugatti Centodieci are already in the hands of the owners

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Everything has been delivered.  10 Bugatti Centodieci are already in the hands of the owners

OAll Bugatti Centodieci have been delivered, the Molsheim-based brand said on Monday. Cristiano Ronaldo received the number 07 in October this year. and Bugatti has now revealed that the latest unit – #10 – is already in the possession of its owner.

“The Centodieci combines all the values ​​of the Bugatti brand in an extraordinary package: rarity, innovation, heritage, craftsmanship and unrivaled performance. The production batch of 10 units was so in demand by our customers that it was sold before the Centodieci. was even officially presented,” said Christophe Piochon, president of Bugatti.

This latest example is finished in Quartz White with carbon fiber trim on the bottom and matte grilles. The brake calipers are painted in Light Blue Sport, as is the logo on the rear that refers to the EB110, the iconic Bugatti model that inspired this Centodieci. Inside, the predominant color is also blue, as you can see in the images above.

This block is powered by the same block as the other nine instances. The 8.0-liter W16 with four turbines is capable of developing 1600 hp. In terms of performance, this allows the Centodieci to hit 100 km/h in just 2.4 seconds and reach a top speed of 380 km/h.

Recall that each unit costs the owners eight million euros before taxes.

Read also: We already know when the Bugatti Centodieci fell into the hands of Ronaldo.

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Economy

The first Dacia hybrid. “The cheapest hybrid family on the market”

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The first Dacia hybrid.  "The cheapest hybrid family on the market"

BUT Dacia revealed this Monday that the hybrid engine has been available since March on the Jogger, the Romanian brand’s model known to be available with a seven-seat variant.

The Jogger Hybrid 140, Dacia’s first hybrid, will hit dealerships in March, but customers can expect and order it as early as January.

The price has been revealed by Dacia and since it’s only available in the seven-seater SL Extreme, it starts at €28,800. The brand claims it is “the most affordable hybrid family car on the market.”

Available in six existing colors to celebrate the launch of this hybrid, there will be a slate gray version, as you can see in the images above.

Equipped with a 1.6 liter four-cylinder petrol engine with 90 hp, the Jogger is also powered by two electric motors (a 50 hp engine and a high-voltage starter-generator). The total power is 140 horsepower. The electric transmission is automatic, four-speed, connected to an internal combustion engine, and two speeds are connected to an electric motor. This combined technology was possible, according to Dacia, only due to the lack of clutch.

Combined with the energy recovery levels of the 1.2kWh (230V) battery pack and the efficiency of the automatic transmission, regenerative braking delivers all-electric traction on 80% of urban journeys and saves up to 40% of fuel compared to a combustion engine vehicle.

Read also: Dual-fuel Dacia Jogger Eco-G. We tried 5 seater and LPG…

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Economy

See how Tesla tests its electric Semi truck in the worst-case scenarios

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Tesla Semi camião elétrico testes

Tesla has finally been able to bring its long-awaited Semi to market. This electric truck promises to revolutionize transportation and bring all the unique characteristics of this type of electric vehicle to this class of vehicles.

Now that the first units have been delivered, there is hope that they will finally be mass-produced and reach more transport companies. With so many promises to be kept, a new video is now emerging showing Tesla testing its Semi truck under worst-case scenarios.


Tesla Semi is already on the market

Like all Tesla electric vehicles, Semi follows the same line of creating a unique design associated with a platform with the most modern technology available. The proof is in what was presented to the public and surprised most people.

To prove the quality of this new proposal, Tesla published in your LinkedIn account new video. In it, he reveals some of the testing he's done to determine the strength and quality of the Semi's design and its (potential) durability.

Tests to prove its durability

It has been revealed that the Tesla electric truck is subjected to numerous tests and its application in the worst scenarios that drivers may face. It doesn't stop at the ruggedness of the Semi's designs, but goes further and focuses on the motors and batteries themselves.

This is the proof that many have been waiting for to ensure that this new proposal is not limited to a lot of autonomy. Its resistance is great and will provide greater durability, further enhancing the Semi's value and performance.

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high quality electric truck

Tesla has already showcased the Semi's quality with a video showing its truck driving roughly 500 miles on just one charge. The big news here is that he managed to make this long journey with a maximum load of about 37 tons.

Now Tesla remains to widely place the Semi on the market. At the moment, only a few companies have access to this new product, with a very long list of pending deliveries, who want to start mass-using this electric truck offering.

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