The Euribor rate rose to six and 12 months this Monday from Friday, reaching a three-month high since December 2008.
The 12-month Euribor rate, currently the most commonly used in Portugal for floating rate home loans, has risen to 4.076% today, plus 0.020 points, after rising to 4.193% on July 7, a new high since November from 2008.
According to May 2023 data from the Bank of Portugal, the 12-month Euribor accounted for 40.3% of the ‘stock’ of floating-rate loans for permanent home ownership. The same data shows that the six- and three-month Euribor represented 34.4% and 22.8% respectively.
The average 12-month Euribor rate increased from 4.007% in June to 4.149% in July, plus 0.142 points.
Already within six months, the Euribor rate, which entered positive territory on July 7, 2022, rose today and was set at 3.957%, 0.029 points more than on Friday and against the maximum of 3.966% recorded on July 25 this year .
The six-month Euribor average rose from 3.825% in June to 3.942% in July, up 0.117 points.
The three-month Euribor also rose to 3.799% today, 0.018 point more than on Friday, a new high since December 2, 2008.
The three-month Euribor average increased from 3.536% in June to 3.672% in July, an increase of 0.136 percentage point.
The Euribor started to rise more sharply from 4 February 2022, after the European Central Bank (ECB) admitted that it could raise key interest rates due to the rise in inflation in the Eurozone and the trend was reinforced with the start of the Russian invasion of Ukraine on February 24, 2022.
At its most recent monetary policy meeting, held on July 27, the ECB raised interest rates again, for the ninth consecutive session, by 25 basis points — as on June 15 and May 4 –, down from the 50 basis points achieved on March 16, February 2, and December 15, when the rate of increases began to slow.
Earlier, on October 27 and September 8, key interest rates rose by 75 basis points. On 21 July 2022, the ECB had raised the three main interest rates by 50 basis points for the first time in 11 years.
The next ECB monetary policy meeting will take place on 14 September.
The three-, six- and 12-month Euribor rates reached an all-time low, respectively -0.605% on December 14, 2021, -0.554% and -0.518% on December 20, 2021.
The Euribor rates are set at the average rate at which a group of 57 banks in the eurozone are willing to lend each other money on the interbank market.
Source: DN
