The housing installment paid to the bank will increase in October for all contracts indexed to the Euribor rates and revised that month, and will increase by 167.54 euros over a twelve-month period, according to the Deco/Dinheiro&Direit simulation .
A customer with a loan worth 150 thousand euros, with a term of 30 years, indexed to the 12-month Euribor and with a spread (bank profit margin) of 1%, pays 818.95 euros in installments in October, while he paid 651.41 so far. euros.
Taking into account a loan under the same conditions (amount and repayment period), but indexed to the six-month Euribor, the benefit from October will be 807.98 euros, an increase of 68.58 euros compared to the last revision in April.
For a Euribor-indexed loan with a term of three months, the repayment is 794.27 euros, 31.03 euros more than what has been paid since the last revision in July.
These values have been calculated taking into account the Euribor averages in August, of 4.030% for six months, 3.880% for three months and 4.149% for 12 months.
The Euribor started to rise significantly from February 4, 2022, after the European Central Bank (ECB) admitted that it may raise key interest rates due to the rise in inflation in the Eurozone, and the trend was reinforced when the Russian invasion of Ukraine began. on February 24, 2022.
At its last meeting, on September 14, the European Central Bank (ECB) announced a further increase in the three key interest rates by 25 basis points, as at the previous meeting, bringing deposit rates to their highest level ever in the area to stand. euros.
In the statement released after the monetary policy meeting of the Governing Council, the ECB reported that the interest rate applicable to the main refinancing operations and the interest rates applicable to the marginal lending facility and the deposit facility will be increased to 4.50% , 4.75% and 4.00%. respectively with effect from September 20, 2023.
“Inflation continues to fall, but is expected to remain too high for too long. The Governing Council is committed to ensuring that inflation returns to its medium-term target of 2% in a timely manner,” the central bank explained, emphasizing that “inflation The rate increase reflects the Governing Council’s assessment of the inflation outlook, in light of available economic and financial data, the dynamics of underlying inflation and the strength of monetary policy transmission.
This was the tenth consecutive rate hike by the central bank, which has raised rates by 450 basis points since July last year, the fastest rising cycle in the eurozone’s history.
The next ECB monetary policy meeting will take place on October 26 in Athens.
The three-, six- and twelve-month Euribor interest rate recorded a historic low of -0.605% on December 14, 2021, -0.554% and -0.518% on December 20, 2021, respectively.
Euribor is determined by the average of the rates at which a group of 19 banks in the eurozone are willing to lend each other money on the interbank market.
Source: DN
