Euribor in little movement – ​​12-month Euribor near year-ago levels

The 12-month Euribor, commonly used as the benchmark interest rate for mortgages, fell on Tuesday. The interest rate was 3.722 percent on Monday, as against 3.715 percent.

The six-month Euribor rose slightly to 3.756% from 3.755%. Three-month Euribor, on the other hand, fell to 3.772% from 3.782% on Monday.

The rate of decline in the Euribor is slower than expected at the start of the year. In practice, interest rates have moved in recent weeks at about the same level as a year ago. For this reason, loan interest rate review dates falling in the spring and early summer have changed lending rates slightly. Generally, the loan interest rate has decreased by 0.1-0.2 percentage points.

The highest Euribor readings of the year occurred in summer and autumn last year. Borrowing rate cuts coinciding with interest rate review dates will also be more significant in the future if EURIBOR remains unchanged or falls.

Euribors rose very quickly in 2022, reflecting, among other things, inflationary trends in Europe and expected rate hikes from central banks. In 2023-24, the Euribor was diverted by central banks, and in particular the European Central Bank, changing their estimates of the pace of easing their monetary policy.

Inflation is slightly higher than expected, so Euribor interest rates in 2024 are not falling as fast as previously expected.

Investors await the ECB’s decision on the first cut in key interest rates at its June meeting on Thursday, June 6, 2024.

How will an increase in your mortgage’s interest rate affect your repayments? Check with a calculator

Leave a Reply

Your email address will not be published. Required fields are marked *