Interest rates | The reference interest rates for mortgages continue to fluctuate, the one-year Euribor jumped rapidly upwards on Monday

Finland the most popular mortgage reference rate, the 12-month Euribor, continues to fluctuate strongly. On Monday, the one-year euribor rose by about 0.09 percentage points and settled at 1.1 percent.

Nordea’s chief analyst Jan von Gerich said on Twitter that Monday’s one-year euribor rise was the fifth largest in a ten-year period. According to Von Gerich, daytime rises higher than Monday’s have been seen in the last two months.

Euribor interest rates have risen rapidly this year. The one-year euribor was still around half a percent negative at the turn of the year, but turned positive in April and in mid-June already exceeded percent limit.

It was feared that interest rates would rise even higher, but so far the rise in the 12-month Euribor seems to have stopped at around one percent.

The delicate economic situation in the euro area is behind the slowdown in the rise in interest rates and a possible slowdown. In July, the European Central Bank (ECB) raised its key interest rates exceptionally by 0.50 percentage points at once. The ECB is expected to raise interest rates even more this year, but expectations have moderated recently.

“The central bank is no longer expected to raise interest rates like in the spring, when the inflation shock was at its worst. Since then, we have received so much bad news that the expectations of a protracted bad inflation problem have eased”, S-bank’s chief strategist Lippo Suominen said to HS last week.

According to Suominen, interest rate sensitivity in the euro area is high.

“Now it has been tested whether the economy can withstand a rise in interest rates, and it can’t. I would love to see interest rates rise to two or three percent and the economy would withstand it and not go into recession. Interest rates reflect the fact that the economy is growing,” Suominen said.