Overview

• The index, published daily at midday from quotes by 18 major banks, sets borrowing costs on many mortgages and loans.
• After falling through early 2025, monthly averages slid from 2.525% in January to 2.079% in July, well below 2024 levels.
• August has hovered around the low-2% range, with readings of 2.113% on 25 August and 2.116% on 26 August and a month-to-date average near 2.114%.
• Lower readings versus a year ago have eased variable-rate payments, with an average gap of about 1.052 percentage points versus the same months of 2024.
• The ECB left its key rate at 2% at its late-July meeting and next convenes on 11 September, while regional data from Galicia show new-loan rates easing more slowly near 3.08% in the second quarter.