Euribor Rates Rise at Three and Six Months, Fall at 12 Months
The Euribor rates registered mixed movements on Friday. The three-month and six-month rates increased, while the 12-month rate decreased compared to the previous day's session. Following these adjustments, the three-month rate advanced to 2.010%, but remained below the rates for the six-month (2.113%) and 12-month (2.164%) terms.
Specifically, the six-month Euribor rate, which has been the most widely used benchmark for variable-rate housing loans in Portugal since January 2024, was fixed at 2.113%. This represents an increase of 0.003 percentage points from Thursday. These rates are critical for homeowners with variable-rate mortgages and for prospective buyers assessing their borrowing capacity. For more information on the financial aspects of buying property, our guide on financial concerns is a valuable resource.
In contrast, the 12-month Euribor rate fell by 0.002 points, settling at 2.164%. The three-month rate saw the largest increase of the day, rising by 0.006 points to reach 2.010%. Euribor rates are determined by the average of interest rates at which a panel of 19 Eurozone banks are willing to lend to one another in the interbank market.
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These daily fluctuations occur within the broader context of the European Central Bank's (BCE) monetary policy. The BCE's last policy meeting on September 11 resulted in the decision to maintain its key interest rates, a move that was widely anticipated by financial markets. This marked the second consecutive meeting without a rate change, following a cycle of eight reductions that commenced in June 2024.
Market participants are now looking ahead to the next monetary policy meeting of the BCE, which is scheduled to take place on October 29 and 30 in Florence, Italy. The decisions made at this meeting will provide further signals regarding the direction of monetary policy and are likely to influence the trajectory of Euribor rates in the subsequent weeks. Staying informed on these developments is crucial for understanding the market, and our market intelligence and analysis section can help.
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