The daily Euribor exceeds 2.2% and scales to 2009 highs

MADRID, 15 Sep. (EUROPA PRESS) -

The Euribor continues its unstoppable climb and stood at 2.223% this Thursday, a level it had not touched since the beginning of February 2009.

After closing August with a monthly average of 1.25%, the index exceeded the 2% level in its daily rate last Friday, after the European Central Bank (ECB) announced a rise in interest rates of 75 basis points, to combat rising inflation.

The Euribor has continued its climb and on Tuesday it surpassed the 2.1% barrier, after the US inflation data for the month of August was worse than expected. The CPI fell less than expected and the core rate rose more than expected, to 6.3%, disappointing the markets, which reacted with strong setbacks, understanding that these data justify a greater tightening of monetary policy by of the Fed

Bankinter analysts have pointed out this Thursday that, after the bad data on American inflation, the mentality about rates in the United States has changed. "And more than that is going to change. Now it is feared that the Fed will raise 100 basis points on September 21 and not 75 basis points. But that is the least of it. The relevant thing is that rates are going to rise beyond what was expected, that it is beginning to be recognized that it is not known how far, because this is serious, and that it is not known when they will go down again after having raised what they have to go up", they point out.

With the increases, the Euribor tries to anticipate the next monetary policy movements. Asufin predicts that the Euribor will stand at 2.2% at the end of the year and believes that it could reach 3% in 2023, while HelpMyCash considers that it will be around 2.5% when the year ends and they do not rule out that It could be close to 3%, depending on how the European economy performs and whether the ECB raises rates once more in 2022 or does so twice at the October and December meetings.

The escalation of the Euribor entails a rise in the price of variable-rate mortgages that are subject to review. With the data for the month to date, the provisional average for September stands at 1.993%. If September closed at 1.9%, a mortgage of 100,000 euros would become more expensive by 84 euros per month or 1,000 euros per year.