Increase in the Key Interest Rate: Another Blow to Consumers

In an already challenging environment marked by a steady decline in purchasing power, households now face a new financial constraint. The central bank has decided to raise its key interest rate from 4.50% to 4.75%. While this increase of 25 basis points is intended as a tool to combat inflationary pressures, it may further burden consumers' budgets.

This decision theoretically aims to contain inflation by encouraging reduced consumption.