The Euribor continues its unstoppable rise and this Thursday stood at 2.223%, a level not reached since the beginning of February 2009. After closing August with a monthly average of 1.25%, the index has surpassed the level of 2 % of its daily rate last Friday, after European Central Bank (ECB) announce an interest rate hike of 75 basis points to counter the rise in inflation.
The Euribor continued its climb and broke the 2.1% barrier on Tuesday, following the inflation figure for United States of America for the month of August it was worse than expected. The IPC It fell less than expected and the core rate rose more than expected, to 6.3%, disappointing the markets, which reacted with severe setbacks, realizing that these data justify a greater tightening of monetary policy by the Fed .
The analysts of banker On Thursday, they pointed out that, after bad US inflation data, the rate mindset in the US has changed. “And more will change. It is now feared that the Fed will raise 100 basis points on September 21st and not 75 basis points. But it’s not important. The important thing is that rates will increase beyond what is expected, that we begin to recognize that we do not know to what extent, because this is serious, and that we do not know when they will fall again after having raised what they must go up “, they point out. .
With the rises, the Euribor tries to anticipate the next monetary policy movements. Asufin provides that the Euribor it will reach 2.2% at the end of the year and believes it can reach 3% in 2023, while from HelpMyCash They believe that at the end of the year it will be around 2.5% and do not rule out that it could reach 3%, depending on how the European economy evolves and whether the ECB will raise rates once again in 2022 or will do it twice. times in October and December meetings.
The escalation of Euribor This is accompanied by an increase in the price of variable rate mortgages subject to revision. With the data from the month to today, the provisional average for September stands at 1.993%. If September closed at 1.9%, a € 100,000 mortgage would become more expensive by € 84 per month or € 1,000 per year.
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