Euribor falls to new three- and 12-month lows and remains unchanged at six months – Markets in a minute

Euribor falls to new three- and 12-month lows and remains unchanged at six months

Euribor fell today to three and 12-month lows since April 2023 and November 2022 and remained at six-month lows in March 2023.

With today’s changes, the three-month rate, which dropped to 3.246%, remained above the six-month rate (3.092%) and the 12-month rate (2.745%).

The six-month Euribor rate, which became the most used in January in Portugal in housing loans with variable rates and which was above 4% between September 14th and December 1st, 2023, remained today at 3.092% , the same value as the previous session and a minimum since March 21, 2023.

Data from the Bank of Portugal (BdP) for July show that the six-month Euribor represented 37.1% of the stock of loans for permanent home ownership with variable rates. The same data indicates that the 12-month and three-month Euribor represented 34.2% and 25.4%, respectively.

Within 12 months, the Euribor rate, which was above 4% between June 16 and November 29, 2023, dropped today to 2.745%, 0.004 points less than on Tuesday.

The three-month Euribor fell today, being set at 3.246%, minus 0.006 points and a new minimum since April 26, 2023.

The Euribor average in September fell at three, six and 12 months, less sharply than in August and with less intensity in shorter maturities.

The Euribor average in September fell 0.114 points to 3.434% for three months (compared to 3.548% in August), 0.167 points for 3.258% for six months (compared to 3.425%) and 0.230 points for 2.936% for 12 months (compared to 3.166%). .

At the most recent monetary policy meeting, on September 12, the ECB lowered the main policy rate by 25 basis points to 3.5%, after maintaining the policy interest rates on July 18.

At the previous meeting, in June, the ECB had lowered key interest rates by 25 basis points, after having kept them at the highest level since 2001 in five meetings and having made 10 increases since July 21, 2022.

On September 18, it was the turn of the North American Federal Reserve (Fed) to cut interest rates by 50 basis points, in what was the first cut since 2020.

The ECB’s next monetary policy meeting takes place on October 17 in Slovenia.

Euribor is set by the average of the rates at which a group of 19 banks in the euro zone are willing to lend money to each other in the interbank market.