The Euribor, coinciding with the ECB’s monetary policy meeting, registers a new fall and is trading to 3.684 percent. The decline is 6 thousandths with respect to its last value.
The June average is around 3.7 percent. With today’s data there are already three consecutive drops in the indicator in daily rate.
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The Euribor and the ECB
Today, June 6, the ECB will cut interest rates and the big question now is what will happen to the Euribor in the coming months.
A rate cut of 25 basis points by the ECB at this meeting is practically a fact, and recent comments from members of the monetary institution have confirmed this.
However, there is great uncertainty about the pace of cuts beyond this date, and as elsewhere, markets have continued to push back their expectations about the pace of future cuts.
At this time, markets no longer expect a second rate cut until October.
This being the case, it seems increasingly clear that good news for mortgage holders will come from now on, since together with the ECB’s rate cuts there will be a fall in the Euribor.
However, the markets have already discounted this cut for some time, so the drop in the indicator may not be very significant.
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The key question now is the pace of cuts beyond June, which in turn will depend on upcoming data, especially inflation.
Experts currently expect a total of between 2 and 3 rate cuts this year, so they are confident that the Euribor to be around 3 – 3.5 percent by the end of 2024.
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