The Euribor rates increased today across all terms compared to Tuesday, continuing the trend observed the day before and moving away from nearly three-year lows reached in recent days.
With today’s changes, the three-month rate rose to 1.969%, remaining below the six-month (2.051%) and 12-month (2.083%) rates.
The six-month Euribor rate, which became the most used in Portugal for variable-rate home loans in January 2024, increased today to 2.051%, 0.032 points higher than on Tuesday.
Data from the Bank of Portugal (BdP) for May indicates that the six-month Euribor accounted for 37.8% of the outstanding stock of variable-rate loans for permanent home ownership and more than half (51%) of new loans of this type.
The same data indicates that the 12-month and three-month Euribor represented 32.3% and 25.6% of the outstanding stock, respectively, and 40.1% and 5.0% of new contracts.
Within the three-month term, the Euribor rate, which has been below 2% since June 24, increased today to 1.969%, 0.021 points more than on Tuesday.
Similarly, the 12-month Euribor advanced by 0.034 points compared to the previous day, reaching 2.083%.
During the last monetary policy meeting on June 4-5 in Frankfurt, the European Central Bank (ECB) lowered interest rates by 0.25 basis points, bringing the main benchmark rate down to 2%.
This reduction was the eighth since the ECB began this cycle of cuts in June 2024, and analysts suggest it will likely be the last this year.
The next ECB monetary policy meeting is slated for July 23-24 in Frankfurt.
The Euribor rates are set by the average of the rates at which a group of 19 eurozone banks is willing to lend money to each other on the interbank market.
