The Euribor rate moved past the 2 percent mark in the daily figure, a milestone not seen since December 2011. This comes one day after boardroom decisions set in motion new monetary policy, as the European Central Bank adjusted its stance on interest rates.
The ECB implemented a 75 basis point rate increase, which translates to refinancing costs rising to 1.25 percent, the deposit facility at 0.75 percent, and the rate for loan utilization climbing to 1.50 percent. This shift signals a tightening cycle as the central bank continues to recalibrate policy amid evolving economic conditions.
With this move, money price has reached its loftiest level since the 2011 period when the ECB began a lengthy era of monetary stimulus that kept rates in negative territory for over a decade. The immediate outcome is a higher baseline for short-term money markets and for financial instruments tied to Euribor.
Following the policy announcement, the Euribor daily rate rose to 2.015 percent, up from 1.903 percent the day before. The 12‑month Euribor finished August at an average of 1.25 percent, the highest level seen since May 2012. September opened at 1.851 percent and has not dropped below that mark on any day to date this month, underscoring a persistent upward drift.
The rising Euribor continues to influence borrowing costs, especially for variable-rate mortgages. The upward trend adds pressure to monthly payments and total interest over the life of a loan. For instance, if September had ended at 1.9 percent, a €100,000 mortgage would have incurred roughly €84 more per month, or about €1,000 more annually, creating a tangible cost for households and savers alike. These changes ripple through household budgets and the wider housing market as lenders reassess product offerings and risk assessments.
Analysts and mortgage platforms offer varied projections for Euribor’s trajectory. Some forecast a level near 2.2 percent by year-end, with potential for a rise toward 3 percent depending on economic momentum and the ECB’s path in upcoming meetings. Others anticipate a more moderate rise, suggesting a range around 2.5 percent by year-end while acknowledging the possibility of higher bounds if inflation remains persistent and growth falters. These views reflect a blend of macroeconomic indicators, including inflation trends, domestic demand, and external factors that influence European monetary policy. In practice, rate paths will hinge on the ECB’s assessment of inflation pressures, growth signals, and the broader global financial climate, and traders will be watching how robust the euro area recovery proves to be in the months ahead. [Citation: Market commentary from risk analysts and financial news outlets]