The euribor for the year now shifted upwards – this is how the change in the reference interest rate is reflected in your loan expenses

A year euribor now shifted upwards on Tuesday, when the reference rate rose to 3.589 percent. On Monday, the 12-month Euribor was quoted at 3.567 percent.

Finland’s most common home loan reference rate has slowly turned downward from the peaks at the end of last year. It rose by more than four percent last summer and reached its recent peak of more than 4.2 percent last fall.

Shorter-term euribor rates moved more moderately on Tuesday. The six-month euribor fell nominally to 3.676 percent, while the three-month euribor rose slightly to 3.714 percent.

Money the mortgage debtor has probably followed the speeches of the members of the European Central Bank’s (ECB) monetary policy-making council during the early summer. Changes in the ECB’s key interest rates are often also reflected in the movements of the Euribor reference interest rate.

In June, the ECB lowered its most important key interest rate, i.e. the bank deposit rate, by 0.25 percentage points to 3.75 percent, but did not yet commit to future interest rate cuts.

President of the ECB Christine Lagarde the news agency said on Monday Bloomberg’s according to that the inflation worries are not over yet. The statement has been interpreted to mean that the central bank is not going to lower interest rates, at least not yet at its July meeting.

The central bank is expected to cut interest rates one or two more times this year. For example, the CEO of the Bank of Finland Olli Rehn review last week The ECB will cut key interest rates two more times this year.

The ECB’s goal is to keep annual inflation at 2 percent in the medium term. According to Lagarde, the ECB will not rest until inflation has really returned to its target level.

According to Tuesday’s preliminary data, harmonized inflation in the euro area slowed to 2.5 percent in June from 2.6 percent in May. Finland’s inflation rate of 0.6 percent is the slowest in the euro area from the preliminary figures for June.