The Euribor rate rose today to three, six and 12 months to new highs since November 2008. The 12-month Euribor rate, which is currently the most used in Portugal for housing loans with a variable rate, advanced today, as it was set at 3.978%, plus 0.034 points, a new high since November 2008.
According to the Bank of Portugal, the 12-month Euribor already represents 43% of the ‘stock’ of loans for permanent home ownership with variable rate, while the six-month Euribor represents 32%. After having shot up on April 12, 2022 to 0.005%, for the first time positive since February 5, 2016, the 12-month Euribor has been in positive territory since April 21, 2022. The average of the 12-month Euribor increased from 3.338 % in January to 3.534% in February, plus 0.196 points.
Within six months, the Euribor rate, which entered positive territory on June 6, also advanced today, to 3.461%, 0.010 points more than on Wednesday and a new maximum since November 2008. The six-month Euribor months was negative for six years and seven months (between November 6, 2015 and June 3, 2022). The six-month Euribor average rose from 2.864% in January to 3.135% in February, plus 0.271 points.
The three-month Euribor, which entered positive territory on July 14 for the first time since April 2015, rose today, being set at 2.948%, plus 0.004 points and a new maximum since November 2008. The three-month Euribor rate months was negative between April 21, 2015 and July 13 last (seven years and two months). The three-month Euribor average rose from 2.354% in January to 2.640% in February, that is, an increase of 0.286 points.
The Euribor began to rise more significantly since February 4, 2022, after the European Central Bank (ECB) admitted that it could raise the key interest rates this year due to the increase in inflation in the euro zone and the trend was reinforced with the start of the invasion of Ukraine by Russia on February 24, 2022. At the last monetary policy meeting, on February 2, the ECB again raised the key interest rates by 50 basis points, an increase equal to that carried out on December 15, when it began to slow down the pace of increases in relation to the two recorded previously, which were 75 basis points, respectively on 27 October and 8 September.
On July 21, 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 rates are set at the average rate at which a group of 57 banks in the eurozone are willing to lend money to each other on the interbank market.