Categories: Business

Euribor fell to 3.69% ahead of ECB meeting

The 12-month Euribor rate, the main indicator used in Spain to calculate mortgages, fell sharply to 3.69% today, a day before the ECB’s rate decision.

The mortgage rate in Spain fell today to 3.69%. from 3.715% yesterday

. Thanks to this reduction the preliminary June average drops to 3.709%.

These falls come ahead of a meeting of the European Central Bank (ECB), which is almost likely to decide tomorrow to cut interest rates by 25 basis points to 4.25%.

Euribor is the main indicator that covers mortgage loans in Spain.

What is Euribor?

This indicator, whose acronym comes from the European Interbank Offered Rate, is the rate at which banks lend money to each other in the interbank market for terms ranging from one week to one year.

Of the five options, Euribor is the most famous. 12 months

, used as a benchmark for variable rate mortgages in Spain. Although the three-month Euribor rate has the greatest impact on assessing the stability of the interbank market, it affects a wide range of financial products.

The Euribor Index is published by the European Monetary Market Institute (EMMI) daily at 11am after excluding extreme quotes and calculating a weighted average of data provided by the 18 institutions participating in the panel.