Euribor Rates

Euribor Rates Chart

What are Euribor rates

Euribor stands for Euro Interbank Offered Rate. It is the average interest rate at which a panel of European banks lend or borrow money from each other in euros. It is often referred to as "the price of money" in the eurozone.

Euribor is not a single rate, but a set of five rates corresponding to different maturities: one week, one month, three months, six months, and twelve months. These rates are updated daily at around 11:00 am Central European Time and published by the European Money Markets Institute (EMMI), a benchmark administrator based in Brussels.

The Euribor rates are calculated by taking the average of the interest rates quoted by the panel banks, after excluding the highest and lowest 15% of the quotes. The panel banks are selected based on their high volume of business in the eurozone money markets, their credit standing, their ethical standards, and their reputation. As of May 2023, there are 19 panel banks from 10 countries contributing to Euribor.

Euribor rates are important because they serve as a benchmark for a range of euro-denominated financial products and services, such as mortgages, savings accounts, car loans, and various derivatives securities. For example, many variable-rate mortgages in Europe are linked to Euribor, meaning that the interest rate on the mortgage changes according to the fluctuations of Euribor. Similarly, many savings accounts offer interest rates that are tied to Euribor, meaning that the interest income on the account varies with Euribor.

Euribor rates are influenced by several factors, such as supply and demand in the interbank market, monetary policy of the European Central Bank (ECB), economic growth and inflation in the eurozone, and market expectations and sentiment. Generally speaking, when there is high demand for money or low supply of money in the interbank market, Euribor rates tend to rise. Conversely, when there is low demand for money or high supply of money in the interbank market, Euribor rates tend to fall.

Euribor is often compared to LIBOR (London Interbank Offered Rate), which is another widely used interbank rate that reflects the average interest rate at which a panel of banks lend or borrow money in various currencies and maturities. The main difference between Euribor and LIBOR is that Euribor only applies to euros, while LIBOR applies to multiple currencies, such as US dollars, British pounds, Japanese yen, and Swiss francs.

MacroVar analyzes the dynamics of EURIBOR rates and provides statistical analysis and historical data for EURIBOR rates, EURIBOR futures, EONIA futures, ECB rate and the EURIBOR forward curve.