Six-month and 12-month Euribor rates rise to fresh 14-year highs
The Euribor rate fell to three months today and rose to six and 12 months to new highs since December 2008, after average rates rose by around 30 basis points in January compared to the previous month.
The six-month Euribor rate, the most used in Portugal for mortgages and which entered positive territory on June 6, rose to 3.009% today, up 0.021 points and a new high since December 2008.
The six-month average Euribor rose from 2.560% in December to 2.864% in January, plus 0.304 points.
The six-month Euribor was negative for six years and seven months (between 6 November 2015 and 3 June 2022).
Over 12 months, Euribor also rose today to 3.414%, plus 0.001 points, a new high since December 2008.
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 3.018% in December to 3.338% in January, plus 0.320 points.
In contrast, the three-month Euribor, which entered positive territory on July 14 for the first time since April 2015, fell today to 2.483%, down 0.029 points, from 2.512% on January 31, the highest since January. 2009.
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 2.063% in December to 2.354% in January, an increase of 0.291 points.
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.