Natália Teixeira
Affiliation: ISG -Business & Economics School, Lisbon, Portugal, CEFAGE and CIGEST
Email: [email protected]
Abstract: Interest rates play an extremely important role in the economy, as over the years there has been a dependence on credit for the normal functioning of economic activity, both from the point of view of individuals and companies. The recent economic instability and the evidence of a period of the energy crisis with inflation reaching extremely high levels, the interest rate increase measures launched by the European Central Bank to control the rise in inflation, have a direct impact on economies and families. This paper focuses on analysing the evolution of the savings rate and the economic well-being index of Portuguese families between 2000 and 2022 about the evolution of the interest rate (3-month Euribor). The results show that interest rates are positively related to the savings rate and negatively related to the economic well-being index.
Keywords: Interest Rates; Household Savings Rates; Economic Well-Being Index.