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Rising inflation likely to affect french property

Posted on 04 May 2011

It seems likely that property owners and buyers in France will face increased mortgage rates, as the European Central Bank acts to control inflation.

Last month the European Central Bank raised the interest rate from 1% to 1.25%, but as yet this has not been passed on to borrowers because it had already been factored in by the banks. However fixed rates have increased slightly and it’s expected that further increases will occur as it becomes more expensive for banks to refinance their offered loan rates……………………………………….Full Article: Source


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