Euribor falls to six months, rises to three and 12 months to new highs – Markets in a Minute

Euribor drops to six months, rises to three months, and 12 months to new highs

Today’s Euribor prices are down to six months and up to three and 12 months, compared to Monday, to new highs on these two maturities.

The 12-month Euribor rate, which is currently the most used in Portugal for variable housing loans, rose today to 4.164%, up 0.019 points from Monday, exceeding the previous maximum set on June 23 this year.

On that day, the 12-month Euribor hit a new high since November 2008, at 4.147%.

According to March 2023 data from the Bank of Portugal, 12-month Euribor accounted for 41% of the “stock” of loans to permanent homeowners at a variable rate. The same data shows that the six- and three-month Euribor accounts for 33.7% and 22.9%, respectively.

The 12-month average price of Euribor increased from 3.862% in May to 4.007% in June, plus 0.145 points.

Within six months, the price of Euribor, which entered the positive zone on June 6, 2022, fell today, set at 3.888%, which is 0.025 points lower than Monday, after rising on June 23 to 3.933%, which is also a new high. Since November 2008.

The six-month average Euribor rose from 3.682% in May to 3.825% in June, up 0.143 points.

The three-month Euribor index in turn rose today to 3.613%, up 0.016 points from the previous day, also exceeding the maximum set on June 23 this year.

On this day, the three-month Euribor price reached 3.610% on June 23, a new high since November 2008.

The three-month average Euribor rose from 3.372% in May to 3.536% in June, an increase of 0.164 percentage points.

Euribor started to rise further from February 4, 2022, after the European Central Bank (ECB) admitted that it may raise key interest rates due to rising inflation in the Eurozone and the trend strengthened with the onset of Russia. Invasion of Ukraine on February 24, 2022.

At its last monetary policy meeting, held on June 15, the European Central Bank raised interest rates again, for the eighth consecutive meeting, by 25 basis points – as on May 4 – up less than 50 basis points on March 16, February 2 and December 15. , when the pace of ascent began to slow down.

Earlier, on October 27 and September 8, interest rates increased by 75 basis points. On July 21, 2022, the European Central Bank, for the first time in 11 years, raised the three main interest rates by 50 basis points.

Three, six and 12-month Euribor prices hit all-time lows, respectively, -0.605% on December 14, 2021, and -0.554% and -0.518% on December 20, 2021.

Euribor rates are determined on the basis of the average rate at which a group of 57 banks in the eurozone are willing to lend money to each other in the interbank market.

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