The six-month Euribor fell to 3.071 percent

The six-month Euribor fell to 3.071% on March 22, 2023, according to data from the Bank of Estonia (BNS). The rate decreased by 0.024 percentage points compared to Monday’s level. The European Central Bank (ECB) raised its three basic interest rates by 50 basis points, or 0.5 percentage points, at its meeting on March 16.

The main refinancing operations rate increased from 3.5% to 3.75%, and the fixed deposit rate rose from 3% to 3.75%. The ECB stated that inflation is expected to remain too high for an extended period and that the goal is to return inflation to the medium-term target level of 2%. The ECB emphasized the importance of a data-based approach to interest rate decisions, considering incoming economic and financial data, core inflation dynamics, and the effectiveness of monetary policy transmission.

The bank is monitoring market tension and prepared to take measures to maintain financial stability in the eurozone’s financial system. The eurozone banking sector remains stable with strong capital and liquidity positions. The ECB has tools for supporting liquidity and maintaining monetary policy transmission.

The ECB’s new macroeconomic forecast, completed in early March, may be affected by recent financial market tensions, which could introduce additional uncertainty regarding inflation and growth forecasts. Prior to recent events, ECB experts had revised the overall inflation forecast downward, primarily due to the lower-than-expected impact of energy prices. Inflation is projected to average 5.3% in 2023, 2.9% in 2024, and 2.1% in 2025.

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