The European Central Bank's latest rate hike is already reflected in the six‑month Euribor that shapes most Estonians' loan payments, meaning borrowers are unlikely to see higher monthly costs this year — but a spring increase could still push payments up. Financial markets currently believe that Thursday's ECB rate hike to 2.5 percent will not be the last this year. "Market expectations put euro‑area base rates at around 2.8 percent by year‑end, and by next spring they are expected to rise to about 3.2 percent. Euribor, which moves mainly according to market expectations, stands at 2.8 percent today," said Rain Leesi, head of investments at Avaron, an investment management firm.
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