The European Central Bank just raised interest rates to 0%. Even that is too much to handle for Carla Brilhante.
Ms. Brilhante has a mortgage for her one-bedroom apartment in Lisbon that is tied to an interest-rate benchmark. For years, that benchmark was negative, as the ECB drove down borrowing costs to foster economic growth. But now, as the central bank reverses course to fight soaring inflation, the rate is rising fast, driving up Ms. Brilhante’s monthly payments for her home in the Portuguese capital.