market rates
The forecast about the ECB rate is of a maintenance on 1.50% level in the coming months, to ease the burden on public finances of countries in financial crisis and despite the presence of increases in the rate of inflation (2.8% in Italy these days compared with previously 2.7% ). That has an impact on the Euribor rates too, the short-term rates on which are indexed variable rate mortgages and many bonds. The 3-month Euribor, the most widely used, is stable among 1.615% on July 26 2011 and 1.54% on August 31; in September 2010 was 0.88 % and in April 2011 was 1.385%. The IRS, the rate at which they are established on long-term fixed mortgage rates, has an opposite trend. It is parameterised on the rate of the German Government "Bund" , and when financial turmoil the performance of this financial instrument goes down because of purchases that flow over it as a safe hav...