The Euribor rate for three months dropped to 1.960% today, falling below the six-month rate of 2.064% and the 12-month rate of 2.051%.
The six-month Euribor, which became the most used in Portugal for variable-rate mortgages in January 2024, decreased to 2.064%, a decline of 0.010 points.
Data from the Bank of Portugal (BdP) for March indicate that the six-month Euribor accounted for 37.65% of the stock of loans for permanent residence with variable rates.
The same data show that the 12-month and three-month Euribor rates represented 32.39% and 25.67%, respectively.
The 12-month Euribor also declined, fixed at 2.051%, 0.019 points lower than on Tuesday.
The three-month Euribor, remaining below 2% since May 30, fell to 1.960%, a decrease of 0.011 points, marking a new low since November 29, 2022.
In May, the monthly averages of the Euribor fell across all three terms, although less sharply than in previous months, with the steepest decline in the three-month period.
The average Euribor rate in May dropped by 0.150 points to 2.099% over three months, 0.082 points to 2.120% over six months, and 0.062 points to 2.091% over 12 months.
This week, on June 4 and 5, the European Central Bank’s (ECB) monetary policy meeting in Frankfurt is anticipated to announce another reduction in the benchmark rate by 0.25 points to 2%.
This expected cut would be the eighth since the ECB began this cycle of reductions in June 2024 and, according to analysts, is likely the last for this year.
In the last monetary policy meeting on April 17, the ECB reduced the benchmark rate by a quarter of a point to 2.25%.
The Euribor rates are determined by the average rates at which a group of 19 eurozone banks are willing to lend money to each other on the interbank market.
