In the election year, Mário Centeno's budget brilliance should still benefit from the dovish by Mario Draghi. The European Central Bank (ECB) has already signaled that it will not raise interest rates before the end of 2019, postponing the previous timing of an increase after the summer of this year. Coupled with the new series of long-term loans to banks, the liquidity of the national economy should be one of the Government's assets this year.
Portugal has been financed with historically low interest rates and the trend is expected to continue, according to analysts heard by the Economic Newspaper. In addition to this is a boost to consumption and an incentive to lend when the banking sector is still recovering from the legacy of the financial crisis.
"The perception that the ECB will not raise interest rates in the foreseeable future favors fixed-rate demand in the euro zone and Portugal has seen interest rates on debt also fall because of this," explained Filipe Garcia, economist and president of IMF – Information on Financial Markets.
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