Interest rates | One-year euribor exceeded the four percent limit for the first time in 15 years

General the reference interest rate 12-month euribor has crossed the four percent limit for the first time in almost 15 years. The interest rate fell below four percent in November 2008.

Economist at Handelsbanken Janne Ronkanen evaluate on Twitter, that the European Central Bank’s (ECB) more hawkish communication than expected will raise the Euribor. According to him, the new forecasts of base inflation portend a continuation of monetary policy tightening.

Nordea’s chief analyst assesses the future direction of interest rates in two ways Jan von Gerich.

“The interest rate peak is probably close, but psychologically the new percentage figure feels higher again. Of course, there are still upside risks if inflation is not curbed at these rates,” von Gerich wrote on Twitter.

Interest rates started to rise last year, when central banks were expected to tighten their monetary policy.

Reference rate reached 4.020 on Friday. It slipped past Nelonen’s border laundry already in March, but fell quickly at that time, when central banks were expected to slow down their rate hikes.

On Thursday, the ECB instead raised key interest rates by 0.25 percentage points. It was the eighth consecutive increase in key interest rates as the central bank tried to rein in increased consumer prices. Director general Christine Lagarde said at the press conference that the ECB will very likely continue raising interest rates in July as well.

One-year Euribor is widely used, for example, to determine the interest rate of mortgages. It crossed the three percent mark in December and two percent in September.