Biggest Interest Rate in Past 20 Years – Following European Central Bank’s Decision, Euribor to Jump as Well

The European Central Bank (ECB) has once again increased the three key interest rates, by 25 basis points, that is, 0.25%. According to The New York Times, this is the highest interest rate in the past 20 years.

Deposit facilities rate will now amount to 3.5%, whereas the interest rate on main refinancing operations will amount to 4%. The interest rate on the marginal lending facility will amount to 4.25%.

The raising of the key interest rates of the ECB also reflects on the price of borrowing.

Due to this decision, the EURIBOR rates will increase, which automatically leads to an increase in the loan rates in euros for borrowers in Serbia, considering that the interests on these loans are tied to said European interest rate.

Housing loan beneficiaries will be affected the most, because these loans are mostly indexed in euros, considering that this type of loan is paid out over several decades in some cases.

Still, even though the interest rates are increased, the loan installments will change on June 30, for both three-month and six-month EURIBOR loans.

European Central Bank

ECB

interest rate increase

Euribor increase

loan price increase

borrowing price increase

European interest rate

three month euribor

six month euribor