Heels|The twelve-month Euribor has recently come down at a brisk pace.
Finland The most used reference interest rate for mortgages, i.e. the twelve-month Euribor, once again fell to the lows of the year on Friday. The interest rate was quoted at 2.918 percent.
The last time the annual Euribor was lower than this was in December 2022.
The reference interest rate has recently come down at breakneck speed. Last week, the interest rate fell below the psychologically important three percent limit. The interest rate has already dropped by more than a percentage point since a year ago.
It is expected that the decline will continue from now on.
“The 12-month Euribor rate ended the week in a bearish mood and once again made new bases for this downturn in interest rates. In the market, the Euribor is priced at around two percent next year. The direction is downward, but there is still a lot of uncertainty associated with the rate of decline,” remarked Nordea’s chief analyst Jan von Gerich messaging service in X.
Among the shorter euribor rates, the six-month euribor was quoted at 3.184 percent and the three-month euribor at 3.436 percent.
European the central bank (EKP) decided on Thursday of last week to lower its key interest rate by 0.25 percentage points. As a result, the key interest rate, i.e. the commercial banks’ deposit rate, was lowered from 3.75 percent to 3.50 percent.
At the time, however, the central bank did not give any hints about future interest rate cuts.
On Wednesday, on the other hand, the US central bank decided to start its interest rate cut at speed. The central bank decided to cut its key interest rate by 0.50 percentage points. Based on the estimates of the members of the Open Market Committee, which decides on monetary policy, it is very likely that the central bank will continue to cut interest rates this year.
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