Three-month Euribor hits March 2025 high ahead of ECB rate hike

The three-month Euribor rate rose to its highest level since March 2025, reaching 2.401%, as markets anticipate the European Central Bank's first rate hike in three years. The six-month Euribor, now the most common benchmark for variable-rate mortgages in Portugal, increased to 2.617%, while the 12-month rate climbed to 2.846%. These moves come ahead of an expected ECB rate increase, ending a prolonged easing cycle. The rate rises reflect tightening monetary policy expectations amid persistent inflation concerns in the eurozone. The ECB is set to announce its decision later today, marking a significant shift from its recent dovish stance.

Global Impact

Economically, higher Euribor rates will increase borrowing costs for households and businesses in the eurozone, particularly in Portugal and other periphery countries with high variable-rate mortgage exposure. This could dampen consumer spending and housing demand, potentially slowing economic growth.