The Euribor falls to 3.58% and projects up to four 12-month ECB rate cuts

Mortgages will be cheaper in 2024. The 12-month Euribor has fallen today to 3.582% in its daily price, 2 basis points less than on Wednesday and 13 less than after the meeting of the European Central Bank (ECB) last Thursday, in Which the president, Christine Lagarde, charged against the expectations of investors and banks of broad reductions in interest rates in the area.

For the benchmark index of seven out of ten mortgages, today’s price marks a new low since April 11 of this year. After this fall, the Euribor pushed the provisional average for December down to 3.71% with one week remaining until the end of the month, which will record the largest monthly fall since 2009, as ‘La Información’ reported two weeks ago.

At this time, the monthly decrease in the Euribor exceeds 30 basis points (0.3 percentage points), which would be its lowest level since March 2023 and increasingly closer to reflecting an interannual decrease that will begin to make prices cheaper. Mortgage installments. At the moment, some mixed loans with semiannual review will already notice a reduction in prices.

The vice president of the European Central Bank (ECB), Luis de Guindos, highlighted this Thursday the slowdown in the inflation rate of the euro zone, as reflecting the latest “positive” data, although these are not enough to change the course of the Monetary policy, so “it is premature to talk about a rate cut.”

“When we see that inflation is clearly converging in a stable manner towards our objective of 2%, then monetary policy will be able to begin to modify its sign. But it is still early for that,” underlines the Spanish economist in an interview with ’20 minutes’. . ‘, according to Europa Press.

However, the markets are going the other way. Both ECB interest rate futures and 12-month interbank lending are trading lower and project up to four rate cuts of 0.25 percentage points from official rates of 4.5% between now and less than one year. The entry into recession of several countries in the euro zone and the slowdown of the rest once again put the ECB in the position of abandoning the monetary tightening cycle earlier than expected.