Euribor without major fluctuations, interest rates on housing loans capped

The European Central Bank kept the benchmark interest rate unchanged at its first monetary policy meeting of the year on Thursday.

Previously, in early January, the National Bank of Serbia (NBS), decided not to change the benchmark interest rate, for the sixth consecutive month. The last increase of 25 basis points was in July 2023 and since then the benchmark interest rate has been at 6.5 percent.

Meanwhile, the three-month Euribor (3M) was around 4 percent and it currently stands at 3.887 percent, while the six-month Euribor (6M) reached a maximum of 4.14 percent, and on January 26, it was 3.873 percent.

As for interest rates on long-term loans, with most of them being housing loans, the NBS decided to temporarily cap the interest rates on housing loans for individual bank clients, those who are taking out such a loan for the first time and those clients which loans do not exceed 200,000 euros.

The nominal interest rate for these debtors is temporarily limited for a period of 15 months, until the end of 2024. The NBS also says the nominal interest rates on  housing loans that were approved by July 30, 2022, cannot exceed 4.08 percent, which means that, as of October 2023, the loan installments have been reduced between 10 and 25 percent.

Euribor (an overnight interbank rate comprised of the average interest rates from a panel of large European banks) did not change too much in the past three months either. Namely, the three-month Euribor ranged from 3.9 to four percent, while the six-month Euribor is in a slight decline – from a maximum of 4.14 percent in mid-October, it fell to the current 3.87 percent.

Benchmark interest rates are stagnating at the European level as well, since the European Central Bank has been taking a break from tightening monetary policy since October, while Euribor has not fluctuated too much during the last few months.

(, 29.01.2024)

This post is also available in: Italiano

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