Three-month Euribor falls 2.5 bps, EBF says

Three-month Euribor falls 2.5 bps, EBF says

The European Banking Federation (EBF) has reported that the three-month Euribor has decreased by 2.5 basis points (bps) from the previous month. This drop is a reflection of the current market conditions and the ongoing adjustments in interest rates.

The Euribor, an interbank lending rate averaged from reports by a panel of banks, serves as a benchmark for approximately EUR 150 trillion of debt and derivatives [1]. The recent decrease suggests a shift in the cost of unsecured Euro-denominated loans in the short-term money market.

The latest data indicates that the three-month Euribor rate has fallen to 1.949%, down from 2.026% in August. This decline is part of a broader trend where interest rates have been adjusting in response to economic indicators and monetary policy decisions.

The EBF's report also notes that the forecast for the beginning of October 2025 is 1.911%, with a maximum rate of 2.066% and a minimum rate of 1.832%. The average interest rate for the month is expected to be 1.940%, indicating a slight decrease from the previous month [2].

Market analysts suggest that this downward trend in the three-month Euribor could be due to various factors, including the European Central Bank's (ECB) interest rate policy and the overall economic outlook for the Eurozone. The ECB has been closely monitoring the economic recovery and adjusting its policies accordingly.

Investors and financial professionals are advised to keep a close eye on future developments in the interest rate market, as any significant changes could impact their financial strategies and portfolios.

References:

[1] https://www.chathamfinancial.com/technology/european-market-rates
[2] https://longforecast.com/euribor-forecast-2017-2018-2019