Europe stumbles overwhelmed by the UK crisis – markets in a minute

Euribor prices rise to new highs in three, six and 12 months

Today, Euribor prices have risen to three, six and 12 month highs, respectively, to new highs since November 2011, February 2009 and December 2008.

The rate of six-month Euribor, the most used mortgage loan in Portugal and which entered the positive territory on June 6, rose today to 2.107%, rising by 0.024 points and a new maximum since February 2009.

The six-month Euribor average rose from 0.837% in August to 1.596% in September.

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

The three-month Euribor index, which entered positive territory on July 14 for the first time since April 2015, also advanced today, having been set at 1.543%, up 0.041 points from Thursday and a new high since November 2015. 2011.

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

The three-month Euribor average rose from 0.395% in August to 1.011% in September.

In the same vein, in 12 months, the price of Euribor rose today, when it was set at 2.778%, plus 0.045 points, which is the new maximum since December 2008.

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

The 12-month Euribor average rose from 1.249% in August to 2.233% in September.

Euribor began to rise further since February 4, after the European Central Bank (ECB) admitted that it may raise key interest rates this year due to high inflation in the euro area and this trend was reinforced with the beginning of the Russian invasion of Ukraine on February 24.

On September 8, the European Central Bank raised the three key interest rates by 75 basis points, the second consecutive increase this year, because on July 21, it raised the three key interest rates by 50 basis points, the first rise in 11 years, with the aim of curbing Curb inflation.

At the end of the last meeting, European Central Bank President Christine Lagarde said a historic 75 basis point hike in interest rates was not the “norm,” but stressed that the assessment would meet at a meeting.

The evolution of interest rates on Euribor is closely related to increases or decreases in the key interest rates of the European Central Bank.

Euribor prices for three, six and 12 months recorded all-time lows, respectively, at -0.605% on December 14, 2021, and -0.554% and -0.518% on December 20, 2021.

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