Euribor will continue negative in 2018
After closing 2017 with a new historical low, the Euribor will continue negative this year after more than 20 consecutive months with this trend.
Moreover, according to a survey conducted by Bloomberg on the evolution of the Euribor, among investment banks, it is not foreseen that it enters positive until, at least, 2019 (in which they estimate that it will be at 0% in the fourth quarter).
This downward behavior is due to monetary policies carried out by central banks in order to revive the economy, but the question that arises now is how long will this context be maintained. In principle the forecast is that the Euribor will continue with negative values during this year .
According to the ECB (European Central Bank), it will not be until 2020 when inflation approaches the 2%, the objective of all central banks, and expects that 1.7% will be reached by then.
The AHE (Spanish Mortgage Association) believes that " According to the behavior of inflation and of the economy in the Eurozone, it is to be expected that the monetary policy promoted by the ECB will reverse the downward trend in rates in the near future and with that start a smooth escalation ".
Regarding mortgages, banks in Spain have reduced the rates on mortgages at a fixed rate in order to sell more this type of loan and those who are paying a variable rate mortgage, have the peace of mind that no abrupt changes are expected in the short term.
However, the evolution of the Euribor also affected a to the profitability of bank deposits. Currently, performance remains stuck at historical lows.
The Euribor closes 2017 with a new historical minimum