The EURIBOR, in downward trend, falls to a new all-time low

The EURIBOR to 12 months has resumed the downward trend, registering new all-time lows when falling under the-0.19 %. The caution shown by the ECB in its latest meeting has caused that the market has moved additionally the perspectives of the first rate increase and the opinion has been generalised of that the excess of liquidity will be expanded more than the expected thing, causing a new reduction of the risk premium on the market interbank. The movement has been with a downward trend more intense in longer terms, with the type of one the swap to 3 years yielding 3 rp since then. Short term, will be difficult that interest rates recover levels significantly, despite the good behaviour of the economy, then the “road map ” of the ECB is already traced. It seems that just some high inflation details or an unexpected turn more bullish by the Fed would be able to promote a tendency change, although is difficult that is produced before finals of this month when details of CPI of the EMU corresponding to are published November.

Source: Bankia Studies