The six and 12-month Euribor rates rose today to new highs since November and August 2024, respectively, after the European Central Bank raised key interest rates on Thursday by 25 basis points. The six-month rate settled at 2.820% and the 12-month rate at 3.160%, while the three-month rate advanced to 2.647%, remaining below the other two.
The six-month Euribor is the most used in Portugal for variable rate housing loans, representing 39.87% of the variable rate permanent primary residence housing loan stock, according to Bank of Portugal data for July. The 12 and three-month rates represented 31.26% and 24.40%, respectively.
The ECB had kept rates unchanged in July but raised them again by 25 basis points on Thursday, after having already done so in June for the first time since September 2023. This rate hike cycle follows a period of eight cuts that the central bank had begun in June 2024. The next ECB monetary policy meeting takes place on 28 and 29 October.
The monthly averages of Euribor in August also advanced, with greater intensity than in July, especially at the longer term. The three-month average rose 0.088 points to 2.513%, the six-month average 0.066 points to 2.713%, and the 12-month average 0.099 points to 2.954%. The Euribor rates are set by the average of the rates at which a group of 21 banks in the euro area is willing to lend to each other in the interbank market.
