Euribor rate rises to three, six and 12 months

The Euribor rate rose this Friday to three, six and 12 months from Thursday after the European Central Bank (ECB) raised interest rates by 50 basis points for the third consecutive time on Thursday.

The 12-month Euribor rate, which is currently the most used in Portugal for variable rate home loans, reversed the trend of the last session this Friday, settling at 3.380%, plus 0.021 points, from the maximum since November 2008, 3.978% . , checked 9 March.

According to the Bank of Portugal, the 12-month Euribor already accounts for 43% of the “stock” of floating rate permanent home loans, while the six-month Euribor stands at 32%.

After rising to 0.005% on April 12, 2022, positive for the first time since February 5, 2016, 12-month Euribor has been in positive territory since April 21, 2022.

The 12-month average Euribor increased from 3.338% in January to 3.534% in February, plus 0.196 points.

Within six months, the Euribor rate, which entered positive territory on June 6, also rose this Friday to 3.055% plus 0.070 points from a November 2008 high of 3.461%, also confirmed on March 9.

The six-month Euribor has been negative for six years and seven months (from November 6, 2015 to June 3, 2022).

The six-month average Euribor rose from 2.864% in January to 3.135% in February, plus 0.271 points.

In a similar vein, the three-month Euribor, which hit positive territory for the first time since April 2015 on July 14, rose this Friday as it was set at 2.750% plus 0.104 from a November 2008 high of 2.978. %, checked 10 March.

The three-month Euribor was negative between 21 April 2015 and 13 July last year (seven years and two months).

The three-month average Euribor rose from 2.354% in January to 2.640% in February, that is, by 0.286 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 this year due to rising inflation in the eurozone, and the trend accelerated with the start of Russia’s invasion of Ukraine on February 24 2022.

At its most recent monetary policy meeting on March 16, the ECB raised key interest rates once again by 50 basis points, the same increase as on February 2 and December 15, when it began to slow the pace of increases from the two previously recorded of 75 basis points. points, respectively, on October 27 and September 8.

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.