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Euribor rises to three and six months to new highs since November 2008

The Euribor rate rose today to three, six and 12 months compared to Thursday, in the two shortest terms to new highs since November 2008.

The 12-month Euribor rate, which is currently the most used in Portugal for variable rate housing loans, advanced today, being set at 3.878%, plus 0.020 points, but below the maximum since November 2008, of 3.978%, verified on March 9th.

According to March 2023 data from the Bank of Portugal, the 12-month Euribor represents 41% of the stock of loans for permanent homeowners with a variable rate. The same data indicate that the six- and three-month Euribor represent 33.7% and 22.9%, respectively.

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

Within six months, the Euribor rate, which entered positive territory on June 6, 2022, rose today to 3.707%, 0.020 points more than on Thursday and a new maximum since November 2008.

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

In the same sense, the three-month Euribor, which entered positive territory on July 14 for the first time since April 2015, advanced today to 3.415%, plus 0.032 points and a new high since November 2008.

The three-month Euribor average rose from 2.911% in March to 3.179% in April, that is, an increase of 0.268 percentage points.

The Euribor began to rise more significantly from February 4, 2022, after the European Central Bank (ECB) admitted that it could raise the main interest rates due to the increase in inflation in the euro zone and the trend was reinforced with the start of Russia’s invasion of Ukraine on February 24, 2022.

At the most recent monetary policy meeting, on May 4, the ECB raised again, for the seventh consecutive time, but only by 25 basis points, the key interest rates, an increase lower than that made on March 16, on February 2 and on December 15, when the pace of increases began to slow down compared to the two previously recorded, which were 75 basis points, respectively on October 27 and September 8.

On July 21, 2022, the ECB increased, for the first time in 11 years, by 50 basis points, the three main interest rates.

The three-, six- and 12-month Euribor rates registered all-time lows, respectively, -0.605% on December 14, 2021, -0.554% and -0.518% on December 20, 2021.

The Euribor are fixed by the average of the rates at which a group of 57 banks in the eurozone are willing to lend money to each other in the interbank market.


Source: Jornal de Negócios by www.jornaldenegocios.pt.

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