Statement by Prof. Dr. Steffen Sebastian, Chair of Real Estate Finance, IREBS Institute for Real Estate Economics, University of Regensburg, on the ECB's interest rate decision
"In the USA, the Fed lowered the key interest rate for the third time in a row just a few days ago. It can be assumed that this is due to political pressure from the US government. In recent months, consumer prices in the US have risen by three percent, exceeding the Fed's target of two percent.Fortunately, the ECB has not been irritated by this step by the Fed and remains true to its stability course of not touching interest rates. The market in the eurozone can live with the interest rate level and it is the right signal to stabilize the financial system.
It remains to be seen how interest rate policy will develop next year. For Germany, the EU's largest economy, the Ifo Institute lowered its growth prospects for 2026 to just 0.8 percent a few days ago. This will also have an impact on investment decisions in the real estate market."
