Prof. Dr. Felix Schindler, Head of Research & Strategy, HIH Invest
“The ECB’s interest rate hike does not come as a surprise. After the first two months after the military escalation in the Middle East and the blockade of the Strait of Hormuz, the broad inflation rate increased, but not the core inflation rate, this picture is now changing: The rise in prices is no longer only the result of the increase in energy and raw material prices, but extends to more and more goods and services due to indirect effects. This development is likely to continue in the coming months. The upward trend in prices is gaining in breadth and is unlikely to be temporary. This is now prompting the ECB to act in order to live up to its mandate. A further interest rate hike is expected in the course of the year. The interest rate hike is unlikely to have any significant impact on the real estate markets. Firstly, long-term capital market interest rates are of greater importance to them, both from a financing point of view and from the idea of opportunity. Secondly, the interest rate move had already been expected by the markets. Capital market interest rates have already risen significantly in recent months.”
