The 12-month Euribor rises to 3.31%, marking the second largest increase of the year. This change directly impacts the cost of variable mortgages and new loans.
The 12-month Euribor has experienced a notable increase, reaching 3.31% on a daily basis, compared to the 3.16% recorded last Friday. This rise is the second most significant of the year, only surpassed by the increase on March 24.
According to expansion.com, this movement responds to expectations of rapid new rate hikes in the eurozone. Markets anticipate at least three additional increases to the two already implemented by the European Central Bank (ECB) so far this year.
If these hikes materialise, the cost of money in Europe could enter a restrictive phase, affecting economic activity in an attempt to curb inflation. Currently, the ECB estimates that the economy is in a neutral zone.
The strong increase in the Euribor is also influenced by pressures in the bond market. In Spain, the yield on the ten-year bond already exceeds 4%, while the US ten-year bond exceeds 5%, in anticipation of the Federal Reserve meeting.
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