Euribor rates fell to six months this Monday and rose to three and 12 months from Friday.
The 12-month Euribor rate, currently the most commonly used in Portugal for floating rate home loans, rose 0.010 points to 3.938% this Monday, after rising to 3.982% on May 29, a new high since November 2008.
According to April 2023 data from the Bank of Portugal, the 12-month Euribor accounted for 40.9% of the ‘stock’ of floating-rate loans for permanent home ownership. The same data shows that the six-month and three-month Euribor represent 33.9% and 22.8% respectively.
The average 12-month Euribor rate rose from 3.757% in April to 3.862% in May, plus 0.103 points.
Within six months, the Euribor rate, which entered positive territory on June 6, 2022, fell back this Monday, as it had been set at 3.753%, minus 0.009 points, after reaching the new maximum of 3.781% since November 2008, also verified on May 29.
The six-month Euribor average rose from 3.516% in April to 3.682% in May, plus 0.166 points.
The three-month Euribor is set at 3.478%, 0.009 point higher than on Friday. On June 5 this year, the Euribor rate reached a new high since November 2008 when it was set at 3.493%.
The three-month Euribor average rose from 3.179% in April to 3.372% in May, an increase of 0.193 percentage points.
The Euribor started to rise more sharply from 4 February 2022 after the European Central Bank (ECB) admitted that it may raise key interest rates due to the increase 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, on 4 May, the ECB raised key interest rates again for the seventh consecutive time, but only by 25 basis points, a lower increase than on 16 March, 2 February and 15 December, when the pace of the increases began to slow down compared to the two previously recorded increases, which were 75 basis points on October 27 and September 8, respectively.
On 21 July 2022, the ECB raised the three main interest rates by 50 basis points for the first time in 11 years.
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 is determined by the average of the rates at which a group of 57 banks in the eurozone are willing to lend each other money on the interbank market.
Source: DN
