Six and 12-month Euribor rates reached high levels after the European Central Bank raised interest rates. This development reflects the direct impact of ECB monetary policy decisions on the cost of credit in the eurozone.
The Euribor rates are calculated as the average of the rates at which a group of 21 banks in the eurozone are willing to lend money to each other in the interbank market. This indicator serves as a reference for numerous financial products, including mortgage loans.
The ECB has been raising interest rates as a measure to combat inflation in the eurozone, which has direct consequences for borrowers and financing conditions in the region. The relationship between central bank decisions and Euribor rates demonstrates how monetary policy affects the real economy.
