Euribor is the average rate at which major European banks lend money to each other, over different terms (1, 3, 6 and 12 months). It is the reference used for many variable-rate mortgages and for the coupons of floating-rate bonds: in those cases the coupon is «Euribor + a spread». When Euribor rises, so do those coupons (and variable mortgage instalments); when it falls, they fall too. It closely tracks the European Central Bank’s rate decisions.