ECB Interest Rates Drop; September Cut Anticipated
The European Central Bank (ECB) has witnessed a decrease in its key interest rates. The twelve-month Euribor rate has dropped to 2.081%, while the six-month rate has fallen to 2.109%.
The ECB maintained its key interest rates at its last meeting on July 24. However, some analysts anticipate a new cut of 25 basis points in September, while others predict rates will remain unchanged until the end of the year.
The Euribor rates have shifted accordingly. The twelve-month rate represents 32.28% and the six-month rate represents 37.74% of the 'stock' of variable-rate loans for permanent housing. Meanwhile, the three-month Euribor rate has increased to 2.034%, but it remains below the longer-term rates.
The next ECB monetary policy meeting will take place on September 10 and 11 in Frankfurt. Market watchers await the ECB's decision on interest rates, with some predicting a cut and others expecting rates to stay put.
