The three-month Euribor rate declined to 1.944% today, remaining below the six-month (2.032%) and 12-month (2.050%) rates. The six-month Euribor, which has become the most used for variable interest rate home loans in Portugal as of January 2024, was set at 2.032%, a decrease of 0.019 points from Monday.
Bank of Portugal (BdP) data from May indicates that the six-month Euribor accounted for 37.75% of the stock of permanent home loans with variable rates.
The same data shows the 12- and three-month Euribor rates represented 32.32% and 25.57% of these loans, respectively.
The 12-month Euribor also saw a decrease, fixed at 2.050%, down by 0.028 points. Similarly, the three-month Euribor dropped to 1.944%, a decline of 0.027 points compared to the previous session.
This week, on Wednesday and Thursday, the European Central Bank (ECB) is holding its monetary policy meeting in Frankfurt.
Investors are keenly anticipating the ECB’s monetary policy meeting this week, expecting interest rates to remain unchanged. Attention will focus on whether ECB President Christine Lagarde will provide any hints about future policy moves.
The main European stock exchanges opened in the red today, with attention focused on statements expected throughout the day from Federal Reserve Chairman Jerome Powell, ECB President Christine Lagarde, and Bank of England Governor Andrew Bailey.
At the last monetary policy meeting on June 4 and 5 in Frankfurt, the ECB lowered interest rates by 0.25 points, reducing the main rate to 2%.
This decrease marked the eighth rate cut since the ECB began this cycle of reductions in June 2024 and is anticipated by analysts to be the last for the year.
Monthly averages of the Euribor further declined in June over the shorter terms, albeit less intensely than previous months, with a more pronounced drop over three months.
The 12-month Euribor monthly average remained stable at 2.081% in June, while the three-month Euribor dropped 0.103 points to 1.984%, and the six-month Euribor fell 0.066 points to 2.050%.
The Euribor rates are determined by the average of the rates at which a group of 19 eurozone banks are willing to lend money to each other in the interbank market.
