Euribor today, August 14, 2026: drops to 2.939% and chains its second consecutive drop

For a Spanish bank to be able to review the interest rate of a variable mortgage referenced to the euribor, it is not enough that the index has risen or fallen: the review must be carried out following a series of legal requirements of contract, transparency, and customer information, established by Law 5/2019, Order EHA/2899/2011 and its development by the Bank of Spain (Circular 5/2012 and subsequent regulations), as well as the doctrine of the Supreme Court and the CJEU on abusive clauses.

1. Basic regulatory framework

• Law 5/2019, on real estate credit contracts (text in BOE): regulates pre-contractual information, material transparency, early maturity, and default interest, as well as conversion between variable and fixed rates.
• Order EHA/2899/2011, on transparency and protection of banking service customers (text in BOE): establishes the general regime of banking transparency and the specific regulation of mortgage loans on housing.
• Bank of Spain Circular 5/2012 (text in BOE): develops Order EHA/2899/2011 regarding official interest rates, reference indices, information formats, and communication obligations to the customer.
• Periodic resolutions of the Bank of Spain and the BOE that publish the official reference interest rates (12-month euribor, etc.), which are the data that must be used in the review.
• Royal Decree-Law 19/2022, on measures to alleviate the rise in rates, which establishes a Code of Good Practices for certain vulnerable debtors, relevant in case of payment difficulties.

2. Requirements regarding the index and the review formula

To review the interest rate, the institution must:

• Apply only the index and the spread provided for in the contract (for example, “12-month euribor published in the BOE + 1%”), without introducing different indices or additional margins not agreed upon.
• Use the official euribor data corresponding to the period established in the contract (usually the monthly average published by the Bank of Spain and recorded in the BOE, not the isolated daily data, as explained by the notes of the Bank of Spain and various articles from Demócrata).
• Respect the contractually established review frequency (annual or semi-annual, most common). It cannot be advanced or delayed arbitrarily to take advantage of euribor movements.
• Adhere to the rules on substitute indices provided in the contract and in Circular 5/2012 in case of index disappearance, without unilaterally imposing more burdensome references if they were not contemplated.

3. Transparency and information when reviewing the rate

The review is only valid if the variable rate clause and its operation meet the standards of material transparency required by Law 5/2019, Order EHA/2899/2011, and civil jurisprudence:

• In the pre-contractual phase, the bank must have delivered the European Standardized Information Sheet (FEIN) and other required documentation, with simulations that allow the customer to understand how the installment will vary in different interest rate scenarios.
• The information must be clear, sufficient, and understandable to an average consumer: how the rate is calculated (euribor + spread), what the review frequency is, and how it can impact the installment.
• According to Order EHA/2899/2011 and Circular 5/2012, the institution must communicate to the customer the new installment and resulting rate before charging it, indicating the index used, the reference date, and the calculation applied.
• It is not mandatory to explain the internal technical methodology of the euribor, but the customer must understand that it is an official index, where it is published, and that its evolution will determine the installment (criterion reinforced by the CJEU regarding other indices such as IRPH).

4. Floor/ceiling clauses and abuse control

If the mortgage includes floor or ceiling clauses, the rate review is only legitimate if:

• Those clauses were explained clearly and understandably (Order EHA/2899/2011 requires highlighting floor/ceiling and the Supreme Court has annulled non-transparent floors).
• They do not generate a significant imbalance contrary to good faith: for example, a very high floor combined with an unreachable ceiling may be questionable.
• After Law 5/2019 and recent doctrine, the institution must demonstrate that the customer could understand the economic impact of that floor on future euribor reviews.

5. What this means in practice

In practice, to review the rate a financial institution must:

• Wait for the agreed review date.
• Take the official euribor corresponding (usually the monthly average published by the Bank of Spain).
• Add the contractual spread and apply, if applicable, valid and transparent floor/ceiling clauses.
• Notify the customer of the new rate and new installment, clearly and with the minimum calculation detail.
• Respect all transparency rules and avoid any unilateral modification not foreseen in the contract or supported by law.

If any of these elements fail (lack of information, unclear clause, unforeseen index, incorrect application of official data, etc.), the review may be challengeable and give rise to claims before the Bank of Spain's Claims Service or civil courts.

The definitive monthly average of the euribor is the arithmetic mean of the daily values of the index during all the business days of the month. The technical calculation of the euribor and its daily publication for the entire euro area is carried out by the European Money Markets Institute (EMMI), while in Spain the Bank of Spain takes that monthly result and disseminates it as the official reference interest rate, which acquires full legal validity when published in the Official State Gazette (BOE).

1. How the monthly average of the euribor is calculated

The 12-month euribor is an interbank interest rate: it reflects the cost at which major banks in the euro area lend money to each other at that term. According to specialized news and the Bank of Spain itself, a two-level calculation scheme is followed:

• 1) Daily calculation of the euribor. Each business day of the European interbank market, a daily quotation of the 12-month euribor is determined. The Demócrata article about the session of August 13, 2026, reminds that the euribor “is only published on TARGET system business days” and records, for example, values between 2.884% and 2.957% during that month (Demócrata).
• 2) Monthly average. Once the month is over, the arithmetic mean of all daily quotations published during business days is taken. Articles about the “provisional average” of July or August emphasize that the relevant data for mortgages “will be the official monthly average,” which is obtained precisely by averaging all business days and not just the last value of the month.
• 3) Provisional and definitive nature. While the month is ongoing, the media talk about a provisional average (for example, an average in July close to 2.78% mid-month). That average may vary until all sessions are included. Only when the period is closed and the monthly index is confirmed by the competent authorities is it called the definitive monthly average.

2. Who calculates and publishes the euribor in the euro area

The official source of the euribor index for the entire euro area is the European Money Markets Institute (EMMI). The Demócrata article about August 13, 2026, explicitly states: “The European Money Markets Institute (EMMI) is the official source for publishing euribor rates. Real-time data is distributed to authorized providers […] while EMMI's free access offers quotations with a 24-hour delay.”

Thus:

• EMMI is the administrator of the euribor index according to European regulations on benchmark indices.
• It calculates daily quotations (at different terms, including 12 months) and disseminates the data to the market.
• From those daily data results, by simple arithmetic mean of business days, the monthly average of the 12-month euribor used as a financial reference in the eurozone is obtained.

3. Who gives official validity to the euribor in Spain

In the Spanish case, the key role is played by the Bank of Spain. The monthly press releases of the institution itself, such as those related to June (2.798%) or July 2026 (2.855%), explain that:

• The 1-year euribor is the main reference index for mortgage loans in Spain.
• The Bank of Spain publishes monthly the 1-year euribor data and other official reference rates (July 2026 note and June 2026 note).
• These notes clarify that the official reference interest rates are valid from their publication in the BOE, which usually takes place a few days after their dissemination by the Bank of Spain.

In parallel, numerous economic articles from Demócrata point out that “the data that will finally be used to review mortgages will be the official monthly average, which the Bank of Spain publishes once the period is closed and which later appears in the Official State Gazette.” That is:

• EMMI calculates and disseminates the euribor (European technical level).
• The Bank of Spain takes that monthly average, frames it as an official interest rate, and makes it public on its website and in press releases.
• The BOE is the channel of official publication with legal effects in Spain, from which the definitive monthly average of the euribor becomes the legally applicable index in mortgage contracts and other referenced products.

4. Summary

In summary, the definitive monthly average of the euribor is the arithmetic mean of the daily values of the 12-month euribor corresponding to all business days of a month. The European Money Markets Institute is responsible for calculating and publishing the euribor as a reference index of the euro interbank market, while in Spain the Bank of Spain is the body that officially recognizes and disseminates that monthly average and whose publication in the BOE grants legal and official status to the data used in mortgages and other financial contracts.

The 12-month euribor, the main reference for variable mortgages in Europe, has experienced a very marked transformation in the last five years (approx. 2019‑2024): it has gone from historically negative lows to highs not seen since before the financial crisis. This evolution is closely linked to changes in the European Central Bank's (ECB) monetary policy.

Historical trends of the euribor (approx. 2019‑2024)

1. Period of negative rates and relative stability (2019‑mid 2021)
During 2019 and well into 2021, the 12-month euribor remained clearly in negative territory, around values close to ‑0.3% / ‑0.5%, with slight fluctuations. This was the culmination of a decade of ultra-expansive monetary policy following the financial crisis and the euro crisis.

In this phase, mortgage installments linked to the euribor benefited from an environment of extremely cheap financing. The general perception was of stability: annual reviews barely varied by a few euros per month, always within a low range.

2. Historical bottom and first upturns (second half of 2021‑first half of 2022)
As the recovery after the pandemic consolidated and inflationary pressures began to appear, the euribor marked some of its historical lows in 2021. However, at the end of that year and early 2022, trend changes are already observed: the index stops deepening in negative territory and begins to rise slowly, anticipating a shift in monetary policy.

3. Very rapid rise and return to positive territory (second half of 2022‑2023)
With the sharp rise in inflation in the eurozone (energy, food, bottlenecks), the ECB began in July 2022 its most intense rate hike cycle since the creation of the euro. Within months, the reference rate went from negative to around 3‑4%.

4. Phase of high levels and possible stabilization (late 2023‑2024)
Once the ECB brought the official rate to clearly restrictive levels and a ceiling in inflation began to be glimpsed, the euribor stabilized at a high plateau, with more contained movements. The market discounts whether the next step will be slow and gradual cuts or a prolongation of the high level for longer, so the euribor moves in a high but oscillating range, pending inflation and growth data.

How ECB policy influences the euribor

The euribor is essentially a short/medium-term interbank interest rate. Although set by markets, it is strongly conditioned by:

• The ECB's official interest rate (reference rate for main refinancing operations and, more recently, the deposit facility rate).
• Expectations of future rate movements: markets anticipate hikes or cuts before they materialize.
• Liquidity measures (asset purchase programs, TLTRO, etc.), which affect the abundance or scarcity of money in the banking system.

In the 2019‑2021 phase, with official rates at minimums and massive asset purchases, the ECB's message was that it would maintain very loose financial conditions for a prolonged period. This pushed the euribor to stable negative levels.

In 2022‑2023, the ECB changed course: rapid rate hikes, progressive end of bond purchases, and greater emphasis on fighting inflation. The combined effect was a sharp increase in the cost of interbank money, which was reflected almost one-to-one in the euribor, even anticipating future decisions.

From the moment the ECB hinted at a possible end to the hike cycle and a phase of “high rates for longer,” the market transferred that message to the euribor in the form of elevated but more stable levels, very sensitive to any change in Governing Council statements or macroeconomic data.

In summary, the last five years show how the euribor went from being a persistently negative and stable index to standing at high and volatile levels, closely following the ECB's monetary policy shift from an ultra-expansive stance to a clearly restrictive one with the central goal of controlling inflation.