Euribor Rates Soar to New Highs Following ECB Rate Hike

The Euribor rates have reached new highs in recent days, following the European Central Bank's decision to raise its key interest rates on September 10. The three-, six- and 12-month Euribor rates rose to their highest levels since November and August 2024. The six-month rate, which has become the most widely used for variable-rate mortgages in Portugal, rose to 2.820 per cent, a new high since November 2024.

The European Central Bank's decision to raise interest rates by 25 basis points had been expected by the market, and it is likely that this move will have an impact on borrowing costs for consumers and businesses. The six-month Euribor rate accounted for 39.87 per cent of variable-rate loans for owner-occupied permanent housing in July, according to data from the Bank of Portugal.

The Euribor rates are determined by the average of the rates at which a group of 21 eurozone banks is willing to lend money to one another on the interbank market. The next monetary policy meeting will take place on October 28 and 29 in Frankfurt, where the ECB will likely reassess its interest rate strategy.