Euribor falls in three months, rises in six and 12 months – Markets in a minute

Euribor rate decreases at three months and increases at six and 12 months.

Today's 3-month Euribor fell and 6- and 12-month Euribor rose, compared to Friday.

With today's changes, the three-month rate, which fell to 3.551%, remained higher than the six-month rate (3.408%) and the 12-month rate (3.183%).

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, rose today to 3.408%, an increase of 0.041 points.

On Friday (16), it reached 3.367%, the lowest since April 11, 2023, after reaching 4.143% on October 18, the highest since November 2008.

Data from the Bank of Portugal (BdP) for June 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 33.7% and 25.7% respectively.

Within 12 months, the Euribor rate, which was above 4% between June 16 and November 29, rose today to 3.183%, plus 0.044 points, against the maximum since November 2008, which was 4.228%, recorded on September 29.

The three-month EUR/USD fell to 3.551%, minus 0.009 points, after hitting 4.002%, its 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, indicating that everything would depend on the data that would become known in the meantime.

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 in July fell again at three, six and 12 months, but more sharply at the long term, having fallen by 0.040 points to 3.685% at three months (compared to 3.725% in June), 0.071 points to 3.644% at six months (compared to 3.715%) and 0.124 points to 3.526% at 12 months (compared to 3.650%).

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