The European Central Bank will raise interest rates by 25 basis points on Thursday, September 10th, with the deposit facility rate reaching 2.50%. Analysts predict this tightening will not be the last, with surveys indicating another rate hike in December. The decision will directly affect Portuguese citizens, impacting housing loan installments and other borrowings. Christine Lagarde will be the focus of attention to understand what clues she will give about future decisions.
Portugal celebrated at the beginning of the week the upgrade of its rating by Fitch from 'A' to 'A+', the fourth improvement in two years, which Finance Minister Joaquim Miranda Sarmento classified as "another great victory for Portugal." The American agency praised the strengthening of public finances and the projected debt reduction trajectory. This good news comes at a time of high volatility in debt markets, with IGCP conducting on Wednesday a triple Treasury Bond auction to issue between 1.5 and 1.75 billion euros.
On the domestic political front, Chega presents on Tuesday in Parliament the first censure motion against Prime Minister Luís Montenegro's second government. The motion aims to hold the prime minister accountable for maintaining Interior Minister Luís Neves, involved in controversies following a turbulent summer. André Ventura accused Luís Neves of being unsuited for the position and threatened to pursue a parliamentary inquiry committee should the motion be rejected, which is expected given that the PS has already indicated it will vote against.
In the business sphere, Apple reveals on Wednesday the new iPhone series, at an event marking John Ternus's debut as CEO of the company, a position he assumed on September 1st. Apple is expected to reveal its first foldable iPhone, a device that could boost selling prices and the company's margins in a market where Samsung currently dominates the foldable smartphone segment.
