Spanish Euribor interest rate explained

October 03, 2007

Euribor is derived from the Eurozone base rate set by the governing council of the European Central Bank (ECB) during monthly meetings presided over by Jean Claude Trichet – President of the ECB.

The ECB raised base rates from 3.5% to 3.75% in March, and then by a further quarter point to 4% on 6 June.

BBVA – one of Spain’s largest banks – expects base rates to rise to 4.5% by the end of the year.

UK and US interest rates stand at 5.75% and 5.25% respectively, both higher than rates in the Eurozone.

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