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Euribor goes down to three months and goes up to six months and 12 months

Euribor prices fell on Tuesday to three months and rose to six months and 12 months.

The 12-month Euribor rate, currently the most widely used in Portugal for variable-rate housing loans, rose today to 4.094%, up 0.002 points, after rising to 4.147% on June 23, a new high since November of 2008.

According to March 2023 data from the Bank of Portugal, 12-month Euribor accounted for 41% of the “stock” of loans to permanent homeowners at a variable rate. The same data shows that the six- 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 price of Euribor, which entered the positive zone on June 6, 2022, also rose today, as it was set at 3.915%, plus 0.007 points, after rising on June 23 to 3.933%, which is also a new high since November. 2008.

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

On the other hand, the three-month Euribor fell today to 3.554%, minus 0.023 points and after being set at 3.610% on June 23, a new high since November 2008.

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 raised interest rates again, for the eighth consecutive meeting, by 25 basis points – as on May 4 – up less than 50 basis points on March 16, February 2 and December 15. , when the pace of ascent began to slow down. Earlier, on October 27 and September 8, interest rates increased by 75 basis points. On July 21, 2022, the European Central Bank, for the first time in 11 years, raised 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