Interest rates on consumer and commercial loans fall, but remain on mortgages | Economy

According to the indicators of the weekly situation published by the central bank, the interest rates on mortgage loans have been maintained; and those of commercial and consumer loans fell.

According to the issuing institute, in the week of July 16 to 23 the Home loan rates averaged 2.75%, like the previous week.

The interest rates of the consumer credits they averaged, meanwhile, 17,34% after having been at 22.12%. Of course, the lowest level was recorded between June 24 and 30, when they averaged 15.58%.

For their part, the interest rates of the commercial credits They also showed a drop: between July 16 and 23 they recorded their lowest average in the last month, 4,24%.

In this regard, XTB Latam market analyst, Benjamín Castillo, recalled that currently the Central Bank maintains a very low interest rateTherefore, the movement of these in bank loans has to do specifically with risk premiums.

“Whenever there are instabilities in the country, it usually leads to an increase in interest rates. When banks consider the interest, they should review the possibility that they will not return the money, therefore they take into account the credit conditions of the person, together with the probability of losing the job or that for some reason they are not paid as requested “He explained.

Taking this scenario into account, according to Castillo, “it is very likely that in the coming weeks we will see a slight decrease in interest rates and that the funds of the AFPs, added to the lack of confidence, contribute to the economic reactivation ”.

These facts will help a lot to stabilize our economy, said the expert, “and it will surely cause a consistent drop in interest rates.”

Now, each time the pandemic is reactivated again and strong restrictive measures are necessary that do not allow for more stable work, it will result in “instability in the economic landscape and this, in turn, will increase the probability of a hike in the interest rates of commercial, consumer and mortgage loans ”, pointed out the analyst at XTB Latam.

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