Current adjustments have led the three-month Euribor rate to decrease to 2.021%, positioning it below the six and twelve-month rates, both set at 2.056%.
The six-month Euribor rate, as of January 2024, gained prominence in Portugal for variable-rate housing loans, declining to 2.056%, which marks a reduction of 0.033 points and sets a new low since October 28, 2022.
Banco de Portugal (BdP) data from March indicates that the six-month Euribor constituted 37.65% of the stock of loans for primary home ownership with a variable rate.
Additionally, the data reflects that the twelve and three-month Euribor rates accounted for 32.39% and 25.67%, respectively.
By a twelve-month term, the Euribor rate also dropped, settling at 2.056%, which is 0.026 points less than on Monday.
Similarly, the three-month Euribor, which has stayed below 2.5% since March 14, declined to 2.021%, down 0.018 points, marking a new low since December 9, 2022.
In April, there was a significant decrease in the monthly averages of Euribor across all three terms, particularly more pronounced than in previous months and most notably in the twelve-month term.
The monthly averages for the three, six, and twelve-month Euribor rates in April fell by 0.193 points to 2.249% in three months, 0.183 points to 2.202% in six months, and 0.255 points to 2.143% in twelve months.
On April 17, during the latest monetary policy meeting, the European Central Bank (ECB) reduced the key interest rate by a quarter-point to 2.25%.
This reduction, which was anticipated by the markets, represents the seventh cut since the ECB commenced this rate-lowering cycle in June 2024.
The ECB’s next monetary policy meeting is scheduled for June 5 and 6 in Frankfurt.
The Euribor rates are determined by averaging the rates at which a group of 19 eurozone banks are willing to lend money to each other in the interbank market.
