Euribor rises 12 months to new maximum since December 2008 – Executive Digest

Today the Euribor price has risen to three months and 12 months, the longer term to a new maximum since December 2008, and has fallen to six months.

The 12-month Euribor rate, currently the most widely used in Portugal for variable rate home loans, advanced today, set at 3.625%, plus 0.047 points, the new maximum since December 2008.

According to the Bank of Portugal, 12-month Euribor accounts for 43% of the “stock” of variable rate permanent home equity loans, while six-month Euribor represents 32%.

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

The 12-month Euribor average rose from 3.018% in December to 3.338% in January, plus 0.320 points.

On the other hand, in six months, the price of Euribor, which entered the positive zone on June 6, has fallen today to 3.197%, 0.028 points lower than the previous day, against the new maximum since December 2008, of 3.225%, verified in feb. 21

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

The six-month Euribor increased from 2.560% in December to 2.864% in January, plus 0.304 points.

The three-month Euribor index, which entered positive territory on July 14 for the first time since April 2015, rose today, steady at 2.683%, plus 0.001 points, after rising to 2.703% on February 16, a new high since January 2009.

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

The three-month average Euribor rose from 2.063% in December to 2.354% in January, an increase of 0.291 points.

Euribor started to rise further since February 4, 2022, after the European Central Bank (ECB) admitted that it may raise key interest rates this year due to rising inflation in the Eurozone and the trend strengthened with the onset of Russia’s invasion of Ukraine on February 24, 2022.

At its last monetary policy meeting, on February 2, the ECB again raised key interest rates by 50 basis points, the same as on December 15, when it began slowing the pace of increases with respect to the two previously recorded, which were 75 basis points, on respectively on October 27 and September 8.

On July 21, the European Central Bank increased, for the first time in 11 years, by 50 basis points, the three main interest rates.

Three, six and 12-month Euribor prices hit all-time lows, respectively, -0.605% on December 14, 2021, and -0.554% and -0.518% on December 20, 2021.

Euribor rates are determined on the basis of the average rate at which a group of 57 banks in the eurozone are willing to lend money to each other in the interbank market.