On Tuesday, the 10-year lending rate in Belgium fell below the 0.5% mark for the first time ever. Falling rates in Europe are due to the massive bond buy-back by the central European Central Bank (ECB) since Monday. The 10-year rate was precisely 0.458% in Belgium on Tuesday.
This exceptionally low rate is good news for the state since it will save hundreds of millions of euros in interest. Customers wishing to take out a mortgage or refinance their outstanding loan will also benefit. People currently saving will however be disappointed.
The 10-year rate has been falling for several months from the 5.7% recorded in November 2011. The 1% mark was reached last November.
The rate in the Netherlands also reached an all-time low on Tuesday, hitting 0.33%.