Heels|Finland’s most popular home loan reference rate fell on Tuesday to its lowest level in more than four months.
Finland the most popular reference interest rate, the 12-month euribor, fell on Tuesday to its lowest level since the beginning of February. The reference interest rate was quoted at 3.6 percent on Tuesday.
The one-year Euribor has been in a downward trend since the beginning of the Midsummer week. As recently as Friday, the reference rate was at 3.672 percent, but already on Monday it fell to 3.628 percent.
The six-month euribor fell below 3.7 percent on Tuesday, when it was quoted at 3.695 percent. The three-month euribor rose slightly to 3.717 percent on Tuesday.
Finnish households have been longing for a reduction in key interest rates for some time now.
Nordea’s chief analyst by Jan von Gerich however, it is not worth drawing any big conclusions about the movements of the Euribor in the first week of the year.
“It is still not possible to speak of a very strong downward trend, but the picture of a decrease in interest rates will strengthen in the coming months”, von Gerich writes message service in X.
European the central bank ECB started easing monetary policy at its meeting in early June, when it lowered its key interest rates by 0.25 percentage points.
However, the ECB’s decision did not yet bring much relief to mortgage debtors.
In its decision, the ECB’s monetary policy decision-making council did not give direct hints about future interest rate cuts, but emphasized that interest rate decisions are based especially on the inflation forecast.
President of the ECB Christine Lagarde emphasized in the press conference after the decision that the Council does not commit to a specific interest rate in advance.
The interest rate cut at the beginning of June had already been communicated so clearly in advance that it did not come as a surprise to anyone. The one-year Euribor actually rose to over 3.7% in the days following the interest rate decision.
Markets expect the ECB to lower its key interest rates once or twice this year.
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