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12-Month Euribor Dips Below 1.5 Percent

The Euribor, the key interbank lending rate, fell to a record low on Wednesday. The 12-month rate is often used as a reference rate on mortgage loans.

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Image: Yle

On Wednesday the 12-month Euribor rate dropped to 1.497 percent, while the three-month rate fell to 1.085 percent.

The historically low rates are a result of a massive loan granted by the European Central Bank (ECB) last week to some 1,000 euro region banks.

The ECB pumped 442 billion euros into European money markets at a flat one percent rate in a move to help unblock credit markets.

Sources: YLE