The Euribor rate fell to new lows in more than one year, three months, six months and 12 months on Monday.
With Monday’s changes, the three-month rate, which fell to 3.584%, remained above the six-month rate (3.494%) and the 12-month rate (3.238%).
The six-month Euribor rate, which in January became the most frequently used in Portugal for variable-rate housing loans and exceeded 4% between September 14 and December 1, fell this Monday to 3.494%, minus 0.059 points and a new minimum since April 14, 2023, after reaching 4.143% on October 18, the highest since November 2008.
Bank of Portugal (BdP) data for May show that the six-month Euribor rate is the most used, accounting for 37.5% of total loans for permanent home ownership with floating rates. The same data shows that the 12-month and three-month Euribor rates were 33.8% and 25.2% respectively.
Over 12 months, the Euribor rate, which was above 4% between June 16 and November 29, fell this Monday to 3.238%, minus 0.082 points and a new minimum since December 27, 2022, against a maximum of 4.228% since November 2008, recorded on September 29.
In the same vein, the three-month Euribor fell to 3.584%, minus 0.039 points and a new minimum since July 3, 2023, after rising to 4.002% on October 19, the highest since November 2008.
On July 18, the ECB kept key interest rates unchanged, and ECB President Christine Lagarde did not specify what would happen at the next meeting on September 12, saying that everything depended on the data that was known.
At its previous meeting in June, the ECB cut key interest rates by 25 basis points after keeping them at their highest level since 2001 for five meetings and making 10 hikes since July 21, 2022.
Analysts expect Euribor rates to reach around 3% by the end of the year.
The Euribor average fell again in July over three, six and 12 months, but more sharply over the longer term.
The Euribor average fell by 0.040 points in July to 3.685% over three months (from 3.725% in June), by 0.071 points to 3.644% over six months (from 3.715%) and by 0.124 points to 3.526% over 12 months (from 3.650%).
Euribor is set as the average of the rates at which a group of 19 eurozone banks are willing to lend to each other on the interbank market.
Author: Lusa
Source: CM Jornal
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