Euribor rises again to a new six-month and 12-month high – Markets in a Minute

Euribor prices are again rising to six-month and 12-month highs

On Monday, Euribor prices fell to three months and rose again at six and 12 months to new highs since December and November 2008.

The 12-month Euribor rate, currently the most widely used rate in Portugal for variable-rate home loans, rose today to 4.046%, up 0.026 points from Friday, a new high since November 2008.

According to data released in March 2023 from the Bank of Portugal, 12-month Euribor accounts for 41% of the “stock” of loans for permanent homeowners at a variable rate. The same data shows that the six-month and three-month Euribor accounts for 33.7% and 22.9%, respectively.

The 12-month average price of Euribor increased from 3.757% in April to 3.862% in May, plus 0.103 points.

Within six months, the Euribor price, which entered positive territory on June 6, 2022, advanced today, set at 3.861%, plus 0.039 points and a new maximum since December 2008.

The six-month average Euribor increased from 3.516% in April to 3.682% in May, plus 0.166 points.

In the opposite direction, the three-month Euribor fell today, set at 3.551%, down 0.021 points, against the maximum since December 2008, of 3.572%, verified on June 16.

The three-month average Euribor increased from 3.179% in April to 3.372% in May, an increase of 0.193 percentage points.

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

At its last monetary policy meeting, held on June 15, the European Central Bank rose again, for the eighth consecutive meeting, but as of May 4, by only 25 basis points, key interest rates, up less than 50 basis points. on March 16, February 2, and December 15, when the pace of increases began to slow compared to the two previously recorded, which were 75 bps, respectively, on October 27 and September 8.

On July 21, 2022, the European Central Bank increased, for the first time in 11 years, the three main interest rates by 50 basis points. 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 is fixed by averaging the rates at which a group of 57 banks in the eurozone are willing to lend money to each other in the interbank market.

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