Why is Euribor continuing to raise interest rates?


It seems like the worst time to do it.

The food prices are skyrocketing because of the logistics, energy and covid crisis and a person that has a morgage now has to pay money towards nothing (because the extra you pay does not go towards the morgage) instead of having left more money towards essentials.

Is there any logic behinds this decision?

In: 4

European inflation is still running hot, so they need to raise the rates until it comes back down to a more manageable number. Food prices rising is a direct effect (and cause!) of inflation, so getting that under control will help slow the rate they rise at.