Interest rate

Traders in markets are looking ahead to the Federal Reserve's summer conference for signs of whether the U.S. central bank thinks inflation is under control or more interest rate hikes are needed to cool inflation.

Fed officials have used the Jackson Hole, Wyoming, conference in previous years to indicate changes in policy direction.

Interest rates on business loans dropped in June, while consumer loans and mortgages became more expensive, Bank of Greece data show.

Lending in Bulgaria remains high against the backdrop of another increase in interest rates by the ECB. The goal of the central bank is to reduce inflation to 2%, but the forecasts are that it will remain high for a long period of time, commented President Christine Lagarde.

At the level of the global economy, focusing on the US, the dominant question is whether we are going to see lower interest rates in the current year. The answer is no, if we look at the history of the Fed. Undoubtedly, we are not on the brink of another stretch of hyperinflation like that of the painful 1965-1982 period of rising prices for goods and services in the US.

All eyes will be on the Central Bank this week when the Monetary Policy Committee (MPC) is set to meet on June 22 to decide about the policy rate.

The banking market is witnessing a trend of conversion of mortgage loans that were contracted with a floating interest rate into a long-term fixed interest rate (mainly five years), as the persistence of inflation at high levels continues to make borrowers nervous about the evolution of interest rates after the end of the freeze that banks have implemented.

Foreign investors and Türkiye watchers are keeping a close eye on the steps the new economic team will take in the period ahead.

There are expectations that portfolio inflows in to the country may increase depending on the messages sent out by those at the helm of the economy management.

Chinese inflation came in flat again in May, official figures showed on June 9, as the country's economy sputters owing to softening demand and falling exports, leading to calls for a rate cut and a bigger government stimulus.

The consumer price index (CPI) rose 0.2 percent on-year, from 0.1 percent in April, the National Bureau of Statistics (NBS), said.

The spread between interest rates on loans and deposits is decreasing significantly, mainly after the recent increases in interest rates on new term deposits by Greek banks, according to the Hellenic Bank Association (HBA).

The interest rate spread between new deposits and loans increased to 5.60 percentage points in April, as the weighted average interest rate on new deposits remained almost unchanged at 0.25%, while the corresponding rate on new loans increased to 5.85%, the Bank of Greece said on Tuesday.