Euribor rates rose in six and 12 months from Friday, and in three months rose to a new high since November 2008.
The 12-month Euribor rate, which is currently most commonly used in Portugal for variable rate home loans, rose this Monday to 3.884%, up 0.009 points from Friday, after rising to 3.982% on May 29, the new maximum since November. 2008.
According to the Bank of Portugal data from March 2023, the 12-month Euribor represents 41% of the “accumulation” of floating rate loans for permanent homeowners. The same data shows that the six- and three-month Euribors are 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.
For six months, the Euribor rate, which entered positive territory on June 6, 2022, rose this Monday as it was set at 3.739% plus 0.011 points against a new high since November 2008 of 3.781%, also confirmed in May. 29.
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 Monday, settling at 3.493%, up 0.003 points from Friday’s (3.490%), hitting 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 last monetary policy meeting on May 4, the ECB again raised key interest rates for the seventh consecutive time, but only by 25 basis points, lower than the increases made on March 16, February 2 and December 15, when rates growth began to slow down compared to the two previously recorded, which amounted to 75 basis 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.
Author: Portuguese
Source: CM Jornal
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