1627 GMT - When the European Central Bank began lifting interest rates in July 2022, higher rates rewarded savers and punished borrowers, Allianz's Katharina Utermoehl and Kathrin Stoffel say. In Germany and France, households were early winners, given higher savings and the dominance of fixed-rate mortgages that insulated borrowers from rising costs. However, in Italy and Spain, savings pools were smaller and variable-rate loans left households exposed as borrowing costs surged. As a result, cumulative savings per capita since June 2022 average 310 euros for Germany and 470 euros for France, while it proved an extra cost of 420 euros in Italy and 690 euros in Spain, the economists say. This divergence won't last, however, as the ECB's lower rates feeds through, they say. (edward.frankl@wsj.com)

(END) Dow Jones Newswires

February 10, 2026 11:27 ET (16:27 GMT)

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