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Euribor rises to three, six and 12 months – markets in a minute

Euribor rises to three, six and 12 months – markets in a minute

Euribor increases to three, six and 12 months

The Bank of Portugal has announced a change in the formula for calculating the effort rate when granting credit. This measure is under public consultation.

Bruno Colaco


The price of Euribor rose today to three, six and 12 months compared to Wednesday.

The 12-month Euribor rate, currently the most widely used in Portugal for variable-rate housing loans, rose today to 4.162%, 0.017 points more than on Wednesday, after rising on September 29 to 4.228%, the new maximum since November 2008.

According to Bank of Portugal data for July 2023, the 12-month Euribor represents 39.4% of the loan stock for permanent home ownership with variable interest rates. The same data indicate that the six- and three-month Euribor represents 35.1% and 23.0%, respectively.

Within six months, the Euribor rate, which entered positive territory on June 6, 2022, also rose today to 4.121%, plus 0.007 points, after rising to 4.138% on October 2, the new maximum since November 2008.

In the case of the three-month Eurobor, it advanced today compared to the previous session, where it was set at 3.965%, plus 0.013 points, after rising on October 10 to 3.988%, the new maximum since November 2008.

The Eurobor started to rise further from 4 February 2022, after the European Central Bank (ECB) admitted that it could raise key interest rates due to increasing inflation in the Eurozone, and this trend was strengthened with the start of the Russian invasion of Ukraine. On February 24, 2022.

At its last monetary policy meeting, held on September 14, the ECB raised key interest rates again for the tenth session in a row, this time by 25 basis points – as it did on July 27 and June 15. And the fourth of June. In May, the increase was less than the 50 basis points recorded on March 16, February 2 and December 15, when the pace of increases began to slow.

Previously, on October 27 and September 8, key interest rates rose by 75 basis points. On 21 July 2022, the European Central Bank, for the first time in 11 years, raised its three key interest rates by 50 basis points.

The ECB’s next monetary policy meeting is scheduled to be held on October 26 in Athens.

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

The Euribor rate is determined by the average interest rates at which a group of 19 eurozone banks are willing to lend money to each other in the interbank market.

Losa

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