March 29, 2023

Euribor falls again to three, six and 12 months

The Euribor rate fell, this Thursday, by 0.169 points over three months, 0.146 points over six months and 0.303 points over 12 months compared to Wednesdayafter Tuesday’s biggest daily decline on all three timeframes.

On Tuesday, the Euribor rate fell by 0.204 percentage points for three months, 0.340 points for six months and 0.349 points for 12 months compared to Monday.

Euribor within 12 months

The 12-month Euribor rate, which is currently the most widely used in Portugal for variable-rate mortgages, this Thursday reversed the trend of the last session as it was set at 3.359%, down 0.303 points and against the high since November of 2008, 3.978%, verified on March 9.

According to the Bank of Portugal, the 12-month Euribor represents 43% of the “stock” of loans for permanent home owners with a variable rate, while the six-month Euribor represents 32%.

After rising to 0.005% on 12 April 2022, for the first time positive since 5 February 2016, the 12-month Euribor has been in positive territory since 21 April 2022.

Average 12-month Euribor rose from 3.338% in January to 3.534% in February, up 0.196 points

Euribor within six months

On a half-year basis, the Euribor rate, which entered positive territory on June 6, also fell today to 2.985%, down 0.146 points from the new high since November 2008 of 3.461%, also verified in March .

This was negative for six years and seven months (between November 6, 2015 and June 3, 2022).

The six-month average Euribor rose from 2.864% in January to 3.135% in February, plus 0.271 points.

Euribor within three months

In the same sense, the three-month Euribor, which entered positive territory on July 14 for the first time since April 2015, fell today to 2.646%, down 0.169 points and against the peak since November 2008 of 2.978 %. , verified March 10.

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

The average Euribor quarter rose from 2.354% in January to 2.640% in February, an increase of 0.286 points.

Euribor started to rise significantly from 4 February 2022 after the European Central Bank (ECB) admitted it could raise key interest rates this year due to rising inflation in the eurozone and the trend was boosted by the start of Russia’s invasion of Ukraine on February 24, 2022.

At its latest monetary policy meeting on February 2, the ECB once again raised key interest rates by 50 basis points, the same increase as on December 15, when it began to slow the pace of hikes compared to the previous two. which were 75 basis points, respectively on 27 October and 8 September.

On July 21, the ECB raised its three main 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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