Euribor rates rose this Wednesday to three, six and 12 months compared to Tuesday.
The 12-month Euribor rate, which is currently the most commonly used variable rate home loan in Portugal, rose to 4.119% plus 0.025 points this Wednesday after rising to 4.147% on June 23, a new high since November 2008.
According to data from the Bank of Portugal in March 2023, the 12-month Euribor accounted for 41% of the “stock” of floating rate loans for permanent homeowners. The same data shows that the six-month and three-month Euribor were 33.7% and 22.9% respectively.
The average 12-month Euribor rate increased from 3.757% in April to 3.862% in May, plus 0.103 points.
Within six months, the Euribor rate, which entered positive territory on June 6, 2022, also rose this Wednesday, settling at 3.930% plus 0.015 points after rising to 3.933% on June 23, also a new high since November 2008. .
The six-month average Euribor rose from 3.516% in April to 3.682% in May, plus 0.166 points.
In the same sense, the three-month Euribor rose this Wednesday to 3.598% plus 0.044 points and after being set at 3.610% on June 23, a new high since November 2008.
The three-month average Euribor rose from 3.179% in April to 3.372% in May, that is, by 0.193 percentage points.
Euribor began to rise more significantly from February 4, 2022, after the European Central Bank (ECB) admitted that it could raise key interest rates due to rising inflation in the eurozone, and the trend accelerated with the start of the Invasion of Ukraine on February 24, 2022.
At the latest monetary policy meeting on June 15, the ECB raised interest rates again for the eighth consecutive meeting by 25 basis points, the same as on May 4, less than the 50 basis point increase made on March 16. February 2 and December 15, when the pace of ascents began to slow down. Earlier, on October 27 and September 8, interest rates rose by 75 basis points. On July 21, 2022, the ECB raised three key interest rates by 50 basis points for the first time in 11 years.
Three-, six- and 12-month Euribor rates hit record lows respectively: -0.605% on December 14, 2021, -0.554% and -0.518% on December 20, 2021.
Euribor is set on the basis of the average rate at which a group of 57 Eurozone banks are willing to lend money to each other in the interbank market.
Author: Portuguese
Source: CM Jornal
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