Spain panicked over possible rate hikes

I have been reading the Spanish press a lot recently to see what is happening in the Spanish property market. On the one hand, the country is transfixed over a strike by truck drivers (link in Spanish) that has left Spain’s major cities without adequate food supplies.

Nevertheless, on the other hand, over the past few weeks, the two largest Spanish dailies, ABC and El Pais, have been warning about the rise in Euribor rates to record levels. I take these warnings to mean that Spanish interest rates are increasing, adding pressure to consumers in a market that is already at risk of contracting. Deutsche Bank, for one, expects Spain’s economy to contract in 2009. In the meantime, higher interest rates and oil prices will keep the Spanish economy from hitting full stride

Sources (in Spanish)
La huelga de transportes comienza a vaciar los supermercados de alimentos frescos, El Pais, 10 Jun 2008
El Euríbor sube al 5,4% y deja la media del mes al borde de su récord histórico, El Pais, 10 Jun 2008
Deutsche Bank augura que España puede entrar en recesión en 2009, ABC, 10 Jun 2008
El Euribor marca un nuevo máximo histórico, ABC, 9 Jun 2008
La posible subida de tipos dispara el Euríbor al 5,4%, el máximo histórico, El Pais, 7 Jun 2008
El Euribor, en su máximo histórico, 5,41%, al avisar el BCE que subirá los tipos en julio, ABC, 7 Jun 2008
El Euríbor responde al aviso de Trichet con un nuevo máximo histórico en el 5,418%, ABC,6 Jun 2008

See also: Other posts under the label ‘Spain.’