Households and businesses are expected to face a double interest rate increase in 2026, as the European Central Bank is projected to go up to two 0.25% each – the first by June and the second by autumn. The Euroibor interbank rate is already close to 2.1%, mainly affecting loans at a floating rate. For a $100,000 mortgage, the monthly installment is expected to increase 24-30 euros. Banking executives warn that borrowers in early years of repayment are more exposed, while deposit returns increase much slower than borrowing rates.
Analyticalally:
Two increases by autumn bring small but noticeable charges – Who are most affected and what to pay attention to borrowers.
In front of one new round of interest rate increases are located households and businesses, as everything shows that in 2026 there will be at least two «Moves» the European Central Bank, each of 0.25%.
According to the analysts' estimates, the first is set in time. until June and the second up to autumn.
According to what they point out experienced bankers «For most borrowers, this trend translates to small increases in monthly instalments, especially for those with floating interest rates, i.e. housing, business and certain consumer loans.».
The basic «source» of increases is the Euroibor interbank rate, the reference rate on which «button» Most loans.
Already moving close to 2,1% And every change passes, sooner or later, into doses.
How much the doses go up
Increases may seem small, but they are not negligible – especially for large loans and long terms.
For example, for a mortgage of EUR 100,000: With a slight rise in Euribor (0.13%), the dose increases about 6 to 7.5 euros per month. If the total increase reaches 0.50%, then the charge goes up to 24 to 30 euros per month
The longer the loan is, the greater the burden. Thus, a 30-year loan is more affected than a 10-year loan, because in early years interest and less capital are paid.
This practically means that Those in the early years of repayment are more «exposed» interest rate increases.
What about consumer products?
At the same time in consumer loans The effects are much smaller.
For example: An increase of 0.13% means only 6 minutes a month for every 1,000 euros.
Even with a 0.50% increase, the burden is around 0.25 euros per month per 1,000 euros. Therefore, for very small loans (e.g. 1,500 – 2,000 euros), changes are almost unnoticed.
When to see the difference in dose
What borrowers need to know is that changes don't all come together. Most loans are adjusted every 3 months, depending on Euribor. This means that:
- Other borrowers will see an increase faster
- Other delayed, depending on their contract
- In any case, the increase gradually passes rather than abruptly.
Deposits: Slowly and... a little bit.
Unlike loans, deposits do not follow at the same pace. The experience of previous years has shown that banks increase deposit rates slower and usually not at the same level as ECB increases
In Greece, in the future, yields were lower than the European average. Households «saw» only 35%-40% of the total interest rate increase. In simple terms: payments rise faster than returns on deposits.
What borrowers should pay attention to
In this environment, those with loans should pay attention to three key points:
- Loan duration: The greater the sensitivity to increases
- Repayment stage: The early years «It hurts.» more the interest rate rise
- Interest rate type: Variables are directly affected, constants are not
For those who think of a new loan, the question «fixed or variable interest rate» It's becoming critical again.
The big picture
Despite the increases, the charges so far are considered to be controlled. However, if increases continue or are prolonged due to energy crisis or inflationary pressures, then borrowing costs can become more noticeable.
For now, the message is clear: doses rise a little – but steadily. And that's something households will start seeing in their account in the next few months.
