What is Euribor?
What is Euribor?
Euribor, short for the European Interbank Offered Rate, is the average interest rate at which a panel of European banks lend to one another in the euro wholesale money market. This rate is quoted daily and serves as a fundamental benchmark for a wide range of financial products and transactions in the European Union.
Euribor exists to provide a transparent, market-based reference rate that reflects the cost of unsecured borrowing between banks. Before the euro, each country had its own reference rate, which made cross-border financial transactions complex. Euribor was introduced in 1999 to create a standardized benchmark for the Eurozone, facilitating pricing of loans, mortgages, bonds and derivatives.
How is Euribor calculated?
Euribor is determined by the European Money Markets Institute (EMMI). A panel of major European banks submits daily the interest rates at which they believe they could borrow funds from other banks in the interbank market for various maturities.
Panel banks
The panel consists of around 20 banks selected for their significance in the euro money market. These banks report their rates for each tenor (1 week, 1 month, 3 months, 6 months and 12 months).
Trimmed mean methodology
EMMI applies a trimmed mean calculation: the highest and lowest 15% of submissions are discarded, and the average of the remaining values becomes the published Euribor rate. This reduces the impact of outliers and manipulation.
Daily publication
Euribor rates are published every business day at approximately 11:00 a.m. CET. The rates are available for all standard tenors and are used as reference for the reset of variable-rate loans and mortgages.
Why does Euribor change?
Several factors influence Euribor rates. Understanding them helps borrowers and investors anticipate movements.
ECB interest rate influence
The European Central Bank (ECB) plays a central role. When the ECB adjusts its key policy rates (such as the deposit facility rate or main refinancing rate), Euribor typically moves in the same direction. A lower ECB rate tends to push Euribor down; a higher ECB rate pushes it up.
Inflation
Inflation expectations drive monetary policy. When inflation rises, the ECB may hike rates to cool the economy, which lifts Euribor. When inflation falls, rate cuts usually follow, and Euribor declines.
Liquidity conditions
The availability of funds in the interbank market affects Euribor. Tighter liquidity—for example during financial stress—can lead to higher Euribor rates as banks become more cautious about lending.
Market expectations
Euribor reflects expectations about future ECB policy. Markets price in anticipated rate changes, so Euribor can move ahead of actual ECB decisions. Geopolitical events and economic data releases also influence sentiment.
How does Euribor affect mortgages and loans?
Many variable-rate mortgages and loans in Europe are tied to Euribor. The interest rate on such products is typically set as Euribor plus a margin determined by the lender.
Variable rate mortgages
A variable-rate mortgage uses a Euribor tenor (often 6-month or 12-month Euribor) as the reference. The rate is reset periodically—for example every 6 or 12 months—based on the current Euribor plus the bank's margin. When Euribor rises, monthly payments increase; when it falls, they decrease.
Margin + Euribor
The total interest rate = Euribor + margin. The margin covers the bank's costs and risk and is fixed for the life of the loan. Only the Euribor component changes at each reset.
Example
If 6-month Euribor is 3.50% and the margin is 1.00%, the borrower pays 4.50% per year. If at the next reset Euribor is 3.00%, the rate becomes 4.00%. On a €200,000 loan over 25 years, that 0.50% decrease reduces the monthly payment by roughly €50.
You can explore current rates on our 3-month, 6-month and 12-month Euribor pages, and use our Euribor loan calculator to estimate payments.
Euribor vs ECB rate and other benchmarks
Euribor is often confused with the ECB's key rates, but they are not the same.
Difference from ECB key rate
The ECB sets its policy rates (e.g. deposit rate, refinancing rate) directly. Euribor is a market-derived rate: it reflects the rate at which banks lend to each other. Euribor usually trades slightly above the ECB deposit rate and tends to track ECB policy with a small spread.
Replacement of LIBOR
LIBOR (London Interbank Offered Rate) was phased out after 2021 due to manipulation scandals. Euribor was reformed and continues as the main euro benchmark. It is now based on actual transactions where possible and is subject to stricter regulation.
SOFR and €STR
In the US, SOFR (Secured Overnight Financing Rate) replaced USD LIBOR. In the euro area, the Euro Short-Term Rate (€STR) exists as an overnight rate. Euribor remains the dominant term benchmark for euro loans and mortgages; €STR is used more for derivatives and short-term products.
Historical development of Euribor
Euribor has gone through distinct phases since its launch in 1999.
Low rate era
From 2009 until 2022, Euribor stayed at historically low levels, often negative. The ECB kept rates low to support the economy after the financial crisis and during the euro-area debt crisis. This period benefited borrowers with variable-rate mortgages but hurt savers.
2022–2023 hikes
A sharp rise in inflation prompted the ECB to raise rates aggressively from mid-2022. Euribor rose from negative territory to over 4% for some tenors. Borrowers with variable-rate loans saw monthly payments increase significantly.
Volatility cycles
Euribor has shown clear cycles of rise and fall. Periods of stress—such as 2008 and 2011–2012—saw spikes. Periods of monetary easing saw prolonged declines. Understanding this history helps put current levels in context. You can explore historical Euribor charts for more detail.
Frequently Asked Questions
What does Euribor stand for?
Euribor stands for the European Interbank Offered Rate. It is the average rate at which European banks lend to each other in the euro money market.
Who uses Euribor rates?
Banks, financial institutions, corporations and individuals use Euribor to price loans, mortgages, bonds and derivatives. It is the main reference rate for variable-rate products in the Eurozone.
How often is Euribor published?
Euribor is published daily on business days by the European Money Markets Institute (EMMI), typically around 11:00 CET.
Is Euribor affected by central bank policies?
Yes. The European Central Bank's monetary policy has a strong influence on Euribor. Changes in ECB key rates, asset purchases and forward guidance all affect the level and path of Euribor.
How can I protect myself from Euribor fluctuations?
Borrowers can consider fixed-rate loans, which are not directly tied to Euribor. Alternatively, some variable-rate products offer interest rate caps or conversion clauses. Monitoring Euribor forecasts can help with planning.
What are the main Euribor tenors?
The main tenors are 1 week, 1 month, 3 months, 6 months and 12 months. The 3-month, 6-month and 12-month Euribor rates are most commonly used for mortgages and loans.
Can Euribor go negative?
Yes. From 2016 until 2022, Euribor was negative for many tenors. This reflected the ECB's negative interest rate policy. When the ECB cut its deposit rate below zero, Euribor followed.
Where can I find historical Euribor data?
You can view historical Euribor charts on this site, with data for different tenors and time periods. Our history page also offers rate tables.