March 30, 2023

Central banks fuel volatility in Europe – Markets in a minute

Euribor rates are rising again in all terms and have reached new highs

Euribor rates rose again today to three, six and 12 months, renewing the highs since December 2008 across all durations.

The six-month Euribor rate, which is the most widely used in Portugal for mortgages and entered positive territory on June 6, 2022, renewed its highest since December 2008 by rising 0.029 points to 2.988%, from 2.959% on Monday.

The six-month average Euribor rose from 2.321% in November to 2.560% in December.

The six-month Euribor was negative for six years and seven months (between 6 November 2015 and 3 June 2022).

Within 12 months, the Euribor strengthened by 0.045 points to 3.415%, compared to 3.368% in the previous session.

After rising to 0.005% on 12 April, the first positive since 5 February 2016, the 12-month Euribor has been in positive territory since 21 April.

The average 12-month Euribor rose from 2.828% in November to 3.018% in December.

Three-month Euribor, which entered positive territory on July 14 for the first time since April 2015, rose 0.030 points to 2.512% (highest since December 2008), after settling at 2.482% on Monday.

The three-month Euribor rate was negative between 21 April 2015 and the latest 13 July (seven years and two months).

The average three-month Euribor rose from 1.825% in November to 2.063% in December.

Euribor started to rise significantly from February 4, after the European Central Bank (ECB) admitted that it could raise key interest rates this year due to rising inflation in the eurozone, and the trend was strengthened by the start of the Russian invasion of Ukraine on the 24 February.

At its last monetary policy meeting on December 15, the ECB raised key interest rates by 50 basis points, slowing the pace of increases from the two previous hikes of 75 basis points, respectively, on October 27 and on September 8.

On July 21, the ECB raised its three key interest rates by 50 basis points for the first time in 11 years.

Three-, six- and 12-month Euribor rates hit historic lows, respectively, of -0.605% on 14 December 2021, -0.554% and -0.518% on 20 December 2021.

Euribor is determined by the average of the interest rates 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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