With today’s changes, the three-month Euribor rate, which fell to 2.236%, is now above the six-month rate at 2.194% and the 12-month rate at 2.132%.
The six-month Euribor rate, which became the most widely used for variable-rate mortgage loans in Portugal as of January 2024, fell today, settling at 2.194%, a decrease of 0.02 percentage points.
Data from the Bank of Portugal (BdP) for February indicates that the six-month Euribor accounted for 37.52% of the outstanding stock of loans for primary residential properties with variable rates. The same data shows that the 12-month and three-month Euribor accounted for 32.50% and 25.72%, respectively.
For the 12-month term, the Euribor rate increased, settling at 2.132%, higher than the previous session.
The three-month Euribor, which has been below 2.5% since March 14, dropped today, settling at 2.236%, a decrease of 0.027 percentage points.
The European Central Bank (ECB) is meeting today and tomorrow to decide on monetary policy, with analysts predicting a new cut of 25 basis points amidst uncertainty surrounding the trade war.
In the previous meeting in March, the ECB decided to reduce, for the fifth consecutive time in six months, its key interest rates by a quarter of a point to 2.5%.
On a monthly basis, the average Euribor rates in March fell for the three, six, and 12-month terms, though less significantly than in previous months.
The average Euribor for March decreased by 0.083 points to 2.442% for three months, by 0.075 points to 2.385% for six months, and by 0.009 points to 2.398% for 12 months.
Euribor rates are determined by the average interest rates at which a group of 19 eurozone banks are willing to lend money to each other in the interbank market.
