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Euribor prices rise to 12 months and reach new maximums at three and six

This Tuesday, Euribor prices rose to 12-month highs and set new three- and six-month highs, compared to Monday.

The 12-month Euribor rate, currently the most widely used in Portugal for variable-rate housing loans, rose 0.004 points today to 3.942%, after rising on May 29 to 3.982%, the new maximum since November 2008.

According to April 2023 data from the Bank of Portugal, 12-month Euribor accounted for 40.9% of the “stock” of loans for permanent home ownership at a variable rate. The same data shows that the six-month and three-month Euribor accounts for 33.9% and 22.8%, respectively.

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

In turn, the six-month Euribor rose by 0.041 points to 3.794%, a new high, after reaching 3.781% on May 29.

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

Within three months, the Euribor index has stabilized at 3.526%, up 0.048 points from Friday, which is a new high, since the previous level was reached on June 5 (3.493%).

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 the last monetary policy meeting, on May 4, the European Central Bank raised again, for the seventh time in a row, but only by 25 basis points, key interest rates, an increase less than that of March 16, on February 2 and the following 15 December, when the pace of increases began to slow compared to the two previously reported, which were 75 bps, respectively on Oct. 27 and Sept. 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.

Portuguese