Today, Euribor fell to new lows in more than one year, three, six and 12 months.

With today's changes, the three-month rate, which fell to 3.636%, remained higher than the six-month rate (3.590%) and the 12-month rate (3.425%).

The six-month Euribor rate, which in January became the most widely used in Portugal for variable-rate housing loans and which was above 4% between September 14 and December 1, fell today to 3.590%, minus 0.001 points and the new minimum since May. Interest rates rose on October 8, 2023, after reaching 4.143% on October 18, the maximum since November 2008.

Data from the Bank of Portugal (BdP) for May shows that the six-month EURIBOR is the most widely used, accounting for 37.5% of the stock of loans for permanent home ownership at variable interest rates. The same data shows that the 12-month and three-month EURIBOR rates represent 33.8% and 25.2% respectively.

Within 12 months, Euribor, which was above 4% between June 16 and November 29, today fell to 3.425% minus 0.001 points, a new low since March 22, 2023, versus the maximum since November 2008, 4.228%, recorded on September 29.

In the same vein, the three-month Euribor rate fell, set at 3.636%, minus 0.019 points, a new low since May 8, 2023, after rising on October 19 to 4.002%, the highest since November 2008.

On July 18, the European Central Bank kept key interest rates on hold and ECB President Christine Lagarde did not clarify what would happen at the next meeting on September 12, noting that everything depends on known data.

At its previous meeting, in June, the ECB cut key interest rates by 25 basis points, having kept them at their highest level since 2001 at five meetings and making 10 increases since July 21, 2022.

Analysts expect Euribor rates to reach around 3% by the end of the year.

The average Euribor rate in June for three, six and 12 months fell more sharply than in May and for shorter maturities.

The average Euribor in June fell by 0.088 points to 3.725% for three months (compared to 3.813% in May), by 0.072 points to 3.715% for six months (compared to 3.787%) and by 0.031 points to 3.650% for 12 months (compared to 3.681%).

The Euribor rate is determined by the average interest rates at which a group of 19 eurozone banks are willing to lend money to each other in the interbank market.