Euribor broke the 2% mark in its daily rate for the first time since December 2011, one day after the European Central Bank’s (ECB) Governing Council’s agreement on interest rates.

The ECB has announced a 75 basis point hike in interest rates, bringing its refinancing rate to 1.25%, while its deposit rate will reach 0.75% and its credit line to 1.50%.

The price of money thus reached its highest level since 2011, when the ECB launched a monetary stimulus that lasted more than a decade and sent interest rates into negative territory.

Following this change in monetary policy, the daily Euribor rose to 2.015% from 1.903% the previous day.

The 12-month Euribor closed in August with an average monthly yield of 1.25%. this is the highest level since May 2012. The indicator started September at 1.851% and so far this month has never traded below this level.

An increase in the Euribor rate entails an increase in the cost of mortgage loans with a floating interest rate, subject to revision. If September had closed at 1.9%, a €100,000 mortgage would have risen by €84 per month, or €1,000 per year.

Asufin forecasts Euribor to be 2.2% by the end of the year and believes it could reach 3% in 2023. may reach 3%, depending on how the European economy behaves and whether the ECB raises rates again in 2022 or twice at meetings in October and December.