The three, six and 12-month Euribor rates rose on Tuesday, with the longer terms reaching their highest values in about two years. The six-month Euribor was set at 2.946%, 0.010 points more than on Monday and a new high since October 2024. Over the 12-month term, the rate advanced to 3.326%, up 0.014 points and a new high since August 2024. The three-month Euribor also rose, to 2.682%, 0.018 points more than the previous day.
According to data from the Bank of Portugal for July, the six-month Euribor represented 39.87% of the outstanding permanent owner-occupied home loans with variable rates. The 12 and three-month Euribor represented 31.26% and 24.40% respectively, showing the importance of these terms in the Portuguese home loan market.
Last Thursday, the European Central Bank raised key rates by 25 basis points, after keeping them unchanged in July. In June, the ECB had already increased rates for the first time since September 2023, following a total of eight cuts since it began its easing cycle in June 2024. The ECB's next monetary policy meeting takes place on October 28 and 29 in Frankfurt.
In August, the monthly average of the Euribor rose across three, six and 12 months, with greater intensity than in July and more markedly over the longest term. The three-month monthly average rose 0.088 points to 2.513%, the six-month average advanced 0.066 points to 2.713%, and the 12-month average rose 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 eurozone is willing to lend money to each other in the interbank market.
