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6-Month Euribor Falls to Historic Low

4 September 2020 – Euribor rates, to which most residential mortgages in Portugal are indexed, have fallen once again, as the 6-month Euribor reached a historic low of -0.451% on Wednesday. The 6-month rate is the most widely used Euribor rate to index mortgage interest payments.

The 3-month Euribor, which has been in negative territory for five years now, held steady at -0.478%, close to its all-time low of -0.489% in March. The 12-month, which banks now use for most new contracts, fell to -0.389%, not far from its all-time low of -0.399%.

The fall in interest rates is good for debtors, but bad for savers, as the savings rate on term bank deposits was just 0.06% in July, according to the Bank of Portugal.

Original Story: Público – Rosa Soares

Translation/Summary: Richard D. Turner