The Euribor has set a new milestone this Friday by standing at 2.5%, a level not touched since January 2009, after rate revisions by central banks in recent days. The United States Federal Reserve On Wednesday, it unanimously approved a third consecutive rise in the country’s interest rates of 75 basis points, to place them in a target range of between 3% and 3.25%.
This represents the highest price of money recorded by the country since January 2008, a few months before the crisis broke out that year with the bankruptcies of Bear Sterns y Lehman Brothers. Following the Fed, Switzerland’s central bank on Thursday abandoned negative rates after raising 75 basis points to the benchmark rate at 0.5%, while the Bank of England raised rates by 50 basis points, up to 2.25%, in line with estimates.
The Bank of Japan decided to keep the country’s interest rates at -0.1%, the same rate it has maintained since January 2016, when it went into negative terrain for the first time in its history, thus distancing itself from the rest of the large central banks. In this scenario, the Euribor continues its climb and has been placed this Friday at 2.5% in its daily rate, taking the provisional average for September to 2.13%, well above the 1.25% registered in August.
The Euribor thus tries to anticipate the next monetary policy movements, since what happens in USA It could be a preview of what happens in Europe in the coming months, they point out from HelpMyCash.
“For the first time in many years, the US and Europe have the same problem at the same time: runaway inflation that they must fight. Both have used the same tool, interest rates. That is why it will not be surprising that if the US raises its interest rates today, the ECB will follow in its footsteps and increase its 0.75% this October, especially if the latest inflation data for September are still high, “he said. pointed out the co-founder of the financial comparator, Olivia Feldman.
According to HelpMyCash, this index could close the year with a value close to 3%, which will significantly increase the fees of the current variable mortgages. The most affected will be the clients with revision in January, to whom a Euribor of -0.502% is currently applied and whose interest will rise by 3.5 points after the update of their contract.
If the Euribor ends the year at 3%, a person with an average loan of 150,000 euros over 25 years and an interest rate of Euribor plus 1% who has their contract reviewed with the value of December will suffer an increase in their installment of around 50%, going from paying 532 euros per month to 792 euros (the increase will be around 3,120 euros per year).