HE euribor up to twelve monthsThe most used indicator for calculating mortgage payments in Spain is on a new high and predictably Will add fifteen consecutive monthly promotions in March Despite the banking crisis of recent weeks.
According to market data collected by EFE, the average Euribor rate for March is tentatively 3,672%, higher than 3,534% in February and, above all, -0.237% a year ago. Since March 9, Euribor has recorded strong volatility due to market fears from the banking situation in both the US and Europe. their rise interest rates carried out by different central banks.
On March 9, Euribor hit a 4% daily rate (3,978%, the highest since 2012), the day before Federal Reserve Chairman Jerome Powell made it clear: Agency will continue to raise interest rates to control inflation.
However, on the same day, the bankruptcy of the American bank Silicon Valley Bank, which participated in the bankruptcy of Signature Bank days ago, was learned. Central banks facing the banking crisis loosen your monetary policy.
In addition, the financial crisis caused strong turbulence bags and investors’ flight to fixed incomeThis caused bond prices to rise and yields fall. All this led Euribor to record its first daily drop after twelve consecutive bullish sessions on March 10.
On March 16, the European Central Bank (ECB) announced a new interest rate hike of 50 basis points and although Euribor recovered, the Swiss bank Credit Suisse crisis and its acquisition by UBS with the approval of the authorities led to the indicator. fall hard again. Thus, last Tuesday, March 22, the indicator dropped to 3,322%, the lowest daily rate since January.
The week ended with interest rate hikes by the Fed and the Bank of England. new market turmoil Due to the distrust created by Germany’s Deutsche Bank after announcing that the subordinated debt would be repaid before maturity.
While it is expected how Euribor will react to this new banking crisis, the indicator closed the week at 3,533% daily and the provisional average rate for March reached 3,672%. This new rise will cause another increase in variable mortgage installments.