Euribor rises to new 3-month high and falls at 6 and 12 months

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The Euribor rates rose today at three months to a new maximum since November 2008 and went down at six and 12 months.

The 12-month Euribor rate, which is currently the most used in Portugal in variable rate mortgages, fell today to 4.190%, down 0.003 points, after having risen to 4.193% on July 7, a new high since November 2008.

According to March 2023 data from the Bank of Portugal, the 12-month Euribor accounted for 41% of the stock of variable rate permanent home loans. The same data indicate that the six and three month Euribor represented 33.7% and 22.9%, respectively.

The average 12-month Euribor rate advanced from 3.862% in May to 4.007% in June, up 0.145 points.

In the six-month term, the Euribor rate, which entered positive territory on July 7, 2022, also dropped today, when it was set at 3.931%, down 0.014 points, after having risen on July 7 to 3.945%, also a new high since November 2008.

The average six-month Euribor rose from 3.682% in May to 3.825% in June, up 0.143 points.

In the opposite direction, the three-month Euribor advanced today to 3.661%, up 0.21 points and a new high since November 2008 .

The average three-month Euribor rose from 3.372% in May to 3.536% in June, an increase of 0.164 percentage points.

Euribor rates began to rise more significantly from February 4, 2022, after the European Central Bank (ECB) admitted it might raise key interest rates due to rising inflation in the Eurozone and the trend was reinforced with the start of Russia’s invasion of Ukraine on February 24, 2022.

At its most recent monetary policy meeting on June 15, the ECB raised interest rates again for the eighth consecutive meeting, by 25 basis points, as it did on May 4, down from 50 basis points on March 16, February 2, and December 15, when it began to slow the pace of increases.

Previously, on October 27 and September 8, the leading rates were raised by 75 basis points. On July 21, 2022, the ECB had raised the three key interest rates by 50 basis points for the first time in 11 years.

The three, six and 12-month Euribor rates were at all-time lows of -0.605% on December 14, 2021, -0.554% and -0.518% on December 20, 2021, respectively.

Euribor is set by the average of the rates at which a group of 57 banks in the euro zone are willing to lend money to each other in the interbank market.

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