Home » Financial industry – Bundesbank raises base interest rate – debtors have to pay more

Financial industry – Bundesbank raises base interest rate – debtors have to pay more

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Financial industry – Bundesbank raises base interest rate – debtors have to pay more

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Frankfurt/Main (dts news agency) – After the Bundesbank changed the so-called base interest rate for the first time in seven years at the beginning of the year, it is now rising sharply. As of July 1, 2023, it will be raised from 1.62 to 3.12 percent, as announced by the Bundesbank.

The base interest rate is primarily used as a basis for calculating default interest, although this is always five percentage points above the specified value for consumer transactions and even nine percentage points above it for commercial transactions. If consumers do not pay their bills on time, they will have to expect penalty interest of 8.12 percent from July, and companies will have to pay an additional 12.12 percent per year if they default. The base interest rate was last higher in 2008.

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