Euribor falls to 15-month low, impact on Estonian households only moderate
The six-month Euro Interbank Offered Rate (Euribor) rate has fallen to 3.59 percent, a level last seen in early May of last year, though experts say this will not make a big difference to most home-owners in Estonia in the immediate future.
Swedbank's Chief Economist Tõnu Mertsina said: "As a result for this year the effects of the Euribor fall on Estonian households will be relatively modest."
Mertsina noted that while the fall in the Euribor eases the burden on borrowers, its impact will be delayed since most loan agreements are tied to the six-month Euribor.
That six-month Euribor exceeded 4 percent in mid-September of last year, when the European Central Bank (ECB) decided to continue hiking interest rates.
It peaked in mid-October at 4.143 percent, followed by a decline, to below the 4 percent-mark again in early December last year.
Prior to that the six-month Euribor had been negative, until summer 2022.
The Euribor is a daily reference rate, published by the European Money Markets Institute and is based on the averaged interest rates at which Eurozone banks borrow unsecured funds from counterparties on the euro wholesale money market.
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Editor: Andrew Whyte
