The twelve-month euribor, commonly used as a reference interest rate for Finnish mortgages, fell to 2.982% on Monday from 2.993% on Friday.
The six-month euribor fell to 2.707% from 2.723%. The three-month euribor fell to 2.454% from 2.488%.
The short-term market rates underlying the Euribor both follow and anticipate the European Central Bank’s policy rates. Expectations are influenced not only by the European economic situation but also by the global market outlook.
During the spring, the rise in oil prices caused by the Iranian crisis raised inflation expectations, and the European Central Bank raised key interest rates at its June meeting. During the spring and early summer, coverage of the Iranian crisis has swayed inflation expectations and expectations about future central bank interest rate moves.