The Euribor rises in June for the ninth consecutive month until 3401%

Busting, besides the month above the 3.5%

The Euribor, the main indicator for setting the interest rate on most mortgages, rose in June for the ninth consecutive month up to 3401%, according to provisional data from the market. This is the highest level ever for this indicator since August 2002.

In this way, the Euribor has risen almost a tenth respect to May 3308% and 1.3 percentage points over the past year, since in June 2005 stood at 2103%.

The Euribor will continue to rise, albeit slightly, until the end of 2006 before the "contagion effect" of increases in interest rates in the United States and the aggressive statements by the European Central Bank (ECB) on its ability to raise the price of money in the euro zone, according to the analyst at Fortis Estefania Ponte. "The Spaniards will suffer a lot this year," agregó.Ponte noted that if the ECB continues with its warnings about continued increases in interest rates, the Euribor could end 2006 even at 4%, while insisting that the next year Progress Indicator will be more moderate.

Various analysts estimate that the situation may be even worse. The possible rise in interest rates by the European Central Bank in August would be a factor against even the Euribor could be placed in 4% at year end.

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Written by Carlos Lopez on July 1, 2006 with 0 comments.