With today’s data, the monthly average stands at 2.8%, such that it would still be below 3% at the end of the year.
The 12-month Euribor has today in its daily evolution the 3%a level that did not register since December 2008. However, with today’s data, the monthly average of the Euribor is standing 2.8%such that it would still remain below 3% at the end of the year.
Throughout December, the index to which most variable mortgages in Spain refer was around 2.8%. However, after the last meeting of the European Central Bank (ECB) last Thursday, the indicator has been above that level for two days. Specifically, it climbed to 2.993%while today in the 3.057%.
At its last meeting of the year, the ECB decided to raise interest rates by 50 basis points to the maximum 2.5%. Despite a moderation from the two previous 75 basis point increases, the central bank announced that same day that rates will have to rise “significantly” and persistently until they reach sufficiently restrictive levels to ensure prices return to the target of 2% in the medium term.
These increases take place after the Euribor stagnated at 2.8% in November. From HelpMyCash they explain that this “paralysis” was due to three factors: on the one hand that in Novemberthe index was already almost a point higher of interest rates; than the experts they speculated in moderation in the rate of rise of the ECB; and finally that the inflation in Europe it had given way.
That’s how they think in the first six months of 2023 rates will reach 3%as a result of which the Euribor would reach 3.5% in June.
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Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
