Euribor rate drops in six-month terms and rises in three and 12-month terms

The three-month Euribor rate was set at 2.036% today, up from 2.014% on Wednesday. Also on the 12-month front, the Euribor rate rose today to 2.109%, up from 2.099% on Wednesday. The six-month Euribor rate fell to 2.050%, down from 2.061% previously.

With today's changes, the three-month rate (2.036%) remained below the six-month (2.050%) and 12-month (2.109%) rates. In May, the monthly Euribor averages fell again in the three terms, but less intensely than in previous months and more sharply in the shorter term (three months).

At its last monetary policy meeting on 4 and 5 June in Frankfurt, the European Central Bank (ECB) cut interest rates by 0.25 basis points, with the main policy rate falling to 2%.

The cut was the eighth since the ECB began its cycle of cuts in June 2024 and, according to analysts, it is likely to be the last this year. The ECB's next policy meeting is scheduled for July 23-24 in Frankfurt.

Euribor is set by the average of the rates at which a group of 19 eurozone banks are willing to lend money to each other on the interbank market. Data from the Bank of Portugal (BdP) for April indicate that the six-month Euribor represented 37.61% of the stock of variable-rate permanent home loans. The 12-month and three-month Euribor represented 32.46% and 25.60% of the same stock, respectively.