Heels|The last time the popular mortgage reference rate was higher than Friday at the end of April.
Popular the reference interest rate for mortgages, the twelve-month Euribor rate rose to its highest level in almost a month on Friday.
One-year euribor was quoted at 3.729% on Friday, while on Thursday it was 3.702%. The last time the interest rate was higher than Friday was at the end of April.
Euribor anticipates changes in the European Central Bank’s (ECB) policy rates. The ECB is widely expected to start interest rate cuts in two weeks at its interest rate meeting on June 6.
Expectations for subsequent interest rate cuts are more unclear. Economists have moderated interest rate cut expectations in the spring.
Danes The Bank said on Friday that it will change its forecast of the ECB’s future interest rate cuts.
Danske Bank now expects the ECB to lower interest rates only twice this year, in June and December, so that the ECB’s deposit rate would be 3.5 percent at the end of the year.
Earlier, Danske Bank predicted that the ECB would lower interest rates three times this year.
Interest rate derivatives price that the central bank would lower its interest rate by around 0.60 percentage points this year, says Nordea in its morning review.
Nordea expects three 0.25 percentage point decreases in the central bank interest rate this year.