- The cycle reversed: the ECB went from easing to tightening its policy because inflation was moving away from its target.
- The Euribor rose again, and with it the instalments of variable-rate mortgages at the moment of each review.
- Reviewing scenarios in good time gives more room than reacting on review day, especially with an adviser.
On 11 June 2026 the European Central Bank raised rates by a quarter point, taking the deposit rate to 2.25%. It was the first increase since 2023 and came after eurozone inflation reached 3.2% in May, pushed up by energy. It was a turn expected by part of the market and feared by another, above all by those whose mortgage is tied to the Euribor.
After two years of cuts, the cycle was turning. For those who had been waiting for borrowing to get cheaper, the news changes the picture; for savers, it may instead mean better remuneration on deposits. In both cases, what matters is to understand what moves a central bank to change course and when its effects are felt in the pocket. The answer, as almost always, is that it depends on the situation of each household and each company.
A turn of the cycle
The ECB was moving from easing to tightening its policy because inflation, pushed up by energy, was drifting away from its target. For the market it was a clear signal that the priority was once again to contain prices, even at the cost of making credit dearer at a time when growth was not especially vigorous. It is an uncomfortable decision, but consistent with the idea that letting inflation settle in costs more in the long run.
Raising rates works through several channels: it makes borrowing dearer, which moderates consumption and investment, and it influences price expectations by showing that the central bank will act if necessary. The effect is not immediate; it takes months to pass through the whole economy, so today’s decisions will be felt over the coming quarters. That is why it pays to look at the whole cycle and not just next month’s instalment.
The effect on the Euribor
The Euribor was rising again. It is the index to which most variable-rate mortgages in Spain are linked, so every ECB move ends up being passed on, with some delay, to families’ instalments at the time of each review. Not all mortgages are reviewed at the same time or on the same terms, so the impact is uneven between families.
Variable-rate mortgages are reviewed periodically, often every six or twelve months, and it is then that the new Euribor is applied to the instalment. Someone who has just reviewed theirs may have a breather; someone whose review is soon should anticipate the figure that will come, rather than discovering it in the bank’s letter. Knowing the review date is the first piece of information worth having. It is also worth checking the agreed spread, which is added to the index and does not change with ECB moves.
Mortgages and business loans
For variable-rate mortgages and business loans, it was time to review scenarios with higher rates: how much the instalment would rise, whether the budget can bear it and what alternatives the bank offers. Doing so in good time and with an adviser gives more room for manoeuvre than reacting on review day.
For companies, besides the instalment it is worth looking at the repayment capacity of the debt as a whole, the maturity calendar and the credit lines available. An early conversation with the bank, before the numbers tighten, usually opens more doors than an urgent request. And at home, considering a partial repayment or a change of terms can ease the pressure. None of this amounts to a specific recommendation: each case requires knowing the figures and the terms of the contract.
A quarter point does not change a plan; a cycle of rises does.
This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.
