Mainz (dpa / lrs) – The Rhineland-Palatinate state government is preparing for higher spending due to the significantly higher interest rates. For every local authority, every company and every private household, the latest interest rate increases on the market have led to loans and credits being taken out at higher interest rates than a year ago, the Ministry of Finance announced at the request of the German Press Agency in Mainz.
Therefore, additional interest-related expenditure for the country over the next few years cannot be avoided if the current development continues. On the other hand, higher interest income from investments could have a dampening effect, the Ministry of Finance explained. However, the development has already been taken into account in the state’s current financial planning.
After years of cheap money, the European Central Bank (ECB) has started a series of rate hikes. The central bank wants to get the high inflation under control. According to a nationwide survey, many medium-sized companies are reacting to the significantly higher interest rates by cutting back on their investments.
© dpa-infocom, dpa:230510-99-629247/2
2023-05-10 05:26:04
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