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Inflation volatility sends Stoxx 600 to two-month low – Markets in a Minute

Inflation volatility sends Stoxx 600 to two-month low – Markets in a Minute

Euribor rises to six months to the new maximum since November 2008

Today, the Euribor price is down by three months and up by six and 12 months compared to Tuesday, in the shortest period of the new maximum since November 2008.

The 12-month Euribor rate, currently the most widely used in Portugal for variable housing loans, advanced today, set at 3.932%, plus 0.028 points, but below the maximum since November 2008, which is 3.978%, verified in March 9th.

According to March 2023 data 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- and three-month Euribor accounts for 33.7% and 22.9%, respectively.

The 12-month average price of Euribor increased from 3.647% in March to 3.757% in April, plus 0.110 points.

Within six months, the price of Euribor, which entered the positive zone on June 6, 2022, also rose today to 3.744%, up 0.012 points from Tuesday and a new high since November 2008.

The six-month average Euribor rose from 3.267% in March to 3.516% in April, plus 0.249 points.

On the other hand, the three-month Euribor, which entered positive territory on July 14 for the first time since April 2015, fell to 3.415% minus 0.007 points, after rising to 3.422% on May 23, a new high since November. 2008.

The three-month average Euribor increased from 2.911% in March to 3.179% in April, an increase of 0.268 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.

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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, 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.