Euro Area Interest Rate 1998-2015 | Data | Chart | Calendar | Forecast

The Governing Council of the ECB decided to launch an asset purchase plan of EUR 60 Billion a month, at the meeting held on January 22nd. The bank also keep the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility unchanged at 0.05%, 0.30% and -0.20% respectively. Interest Rate in the Euro Area averaged 2.40 Percent from 1998 until 2014, reaching an all time high of 4.75 Percent in October of 2000 and a record low of 0.05 Percent in September of 2014. Interest Rate in the Euro Area is reported by the European Central Bank.

      Forecast    
Euro Area Interest Rate


Actual Previous Highest Lowest Dates Unit Frequency
0.05 0.05 4.75 0.05 1998 - 2015 percent Daily
In the Euro Area, interest rate decisions are taken by the Governing Council of the European Central Bank. The primary objective of the ECB’s monetary policy is to maintain price stability. The ECB’s Governing Council has defined price stability as "a year-on-year increase in the Harmonised Index of Consumer Prices (HICP) for The Euro Area of below 2%. This page provides - Euro Area Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Content for - Euro Area Interest Rate - was last refreshed on Tuesday, January 27, 2015.


ECB Will Buy 60 Billion Euros of Assets a Month


The European Central Bank announced an asset purchase plan of 60 Billion euros a month and left key interest rates unchanged at record low on January 22nd. The QE programme came bigger than expected, aiming to boost growth and fight low inflation.

Under the QE programme, the ECB will purchase public and private sector assets worth € 60 billion per month starting March 2015 until September of 2016. The QE programme, similar to the one Fed undertook from 2008 to 2014 is expected to reduce borrowing cost, increase spending and boost growth.

The interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility were left on hold at 0.05 percent, 0.30 percent and -0.20 percent respectively.

Extracts from the Introductory statement to the press conference by Mario Draghi, President of the ECB:

First, it decided to launch an expanded asset purchase programme, encompassing the existing purchase programmes for asset-backed securities and covered bonds. Under this expanded programme, the combined monthly purchases of public and private sector securities will amount to €60 billion. They are intended to be carried out until end-September 2016 and will in any case be conducted until we see a sustained adjustment in the path of inflation which is consistent with our aim of achieving inflation rates below, but close to, 2% over the medium term. In March 2015 the Eurosystem will start to purchase euro-denominated investment-grade securities issued by euro area governments and agencies and European institutions in the secondary market. The purchases of securities issued by euro area governments and agencies will be based on the Eurosystem NCBs’ shares in the ECB’s capital key. Some additional eligibility criteria will be applied in the case of countries under an EU/IMF adjustment programme.

Second, the Governing Council decided to change the pricing of the six remaining targeted longer-term refinancing operations (TLTROs). Accordingly , the interest rate applicable to future TLTRO operations will be equal to the rate on the Eurosystem’s main refinancing operations prevailing at the time when each TLTRO is conducted, thereby removing the 10 basis point spread over the MRO rate that applied to the first two TLTROs.

Third, in line with our forward guidance, we decided to keep the key ECB interest rates unchanged.

As regards the additional asset purchases, the Governing Council retains control over all the design features of the programme and the ECB will coordinate the purchases, thereby safeguarding the singleness of the Eurosystem’s monetary policy. The Eurosystem will make use of decentralised implementation to mobilise its resources. With regard to the sharing of hypothetical losses, the Governing Council decided that purchases of securities of European institutions (which will be 12% of the additional asset purchases, and which will be purchased by NCBs) will be subject to loss sharing. The rest of the NCBs’ additional asset purchases will not be subject to loss sharing. The ECB will hold 8% of the additional asset purchases. This implies that 20% of the additional asset purchases will be subject to a regime of risk sharing.

Looking ahead, today’s measures will decisively underpin the firm anchoring of medium to long-term inflation expectations. The sizeable increase in our balance sheet will further ease the monetary policy stance. In particular, financing conditions for firms and households in the euro area will continue to improve. Moreover, today’s decisions will support our forward guidance on the key ECB interest rates and reinforce the fact that there are significant and increasing differences in the monetary policy cycle between major advanced economies. Taken together, these factors should strengthen demand, increase capacity utilisation and support money and credit growth, and thereby contribute to a return of inflation rates towards 2%.


ECB | Joana Taborda | joana.taborda@tradingeconomics.com
1/22/2015 2:12:17 PM


Recent Releases

ECB Quantitative Easing Can’t Save the Eurozone
The ECB is likely to launch purchases of sovereign bonds later this week. The action may kick-start demand and fight deflation in the short term but its impact on growth and inflation is likely to be limited, according to a paper published by the Open Europe. Published on 2015-01-19

ECB Keeps Rates on Hold
The European Central Bank kept interest rates unchanged at record lows and said that monetary stimulus, the expansion of the balance sheet and the outlook for price developments will be only reassess early next year. The bank has also sharply lowered its economic growth forecasts, and stressed that the risks remain on the "downside". Published on 2014-12-04


Calendar GMT Event Actual Previous Consensus Forecast (i)
2015-01-22 12:45 PM
ECB Interest Rate Decision 
0.05% 0.05% 0.05% 0.05%
2015-01-22 01:30 PM
ECB Press Conference 
2015-01-22 01:30 PM
ECB Quantitative Easing 
€ 60B
2015-03-05 12:45 PM
ECB Interest Rate Decision 
0%
2015-03-05 01:30 PM
ECB Press Conference 
2015-04-15 12:45 PM
ECB Interest Rate Decision 
0%


Euro Area Money Last Previous Highest Lowest Unit
Interest Rate 0.05 0.05 4.75 0.05 percent [+]
Interbank Rate 0.08 0.08 11.82 0.08 percent [+]
Money Supply M1 5814239.00 5746629.00 5814239.00 444072.00 EUR Million [+]
Money Supply M2 9571981.00 9503797.00 9571981.00 1070326.00 EUR Million [+]
Money Supply M3 10206940.00 10134014.00 10206940.00 1097365.00 EUR Billion [+]
Central Bank Balance Sheet 2158222.00 2150247.00 3102227.00 692641.00 EUR Million [+]
Foreign Exchange Reserves 329322.00 330113.00 340247.00 178392.00 USD Million [+]
Loans to Private Sector 10431007.00 10430510.00 11104492.00 3241223.00 EUR Million [+]


Interest Rate Reference Previous Highest Lowest Unit
Australia 2.50 Dec/14 2.50 17.50 2.50 percent [+]
Brazil 12.25 Jan/15 11.75 45.00 7.25 percent [+]
Canada 0.75 Jan/15 1.00 16.00 0.25 percent [+]
China 5.60 Dec/14 5.60 10.98 5.31 percent [+]
Euro Area 0.05 Jan/15 0.05 4.75 0.05 percent [+]
France 0.05 Jan/15 0.05 4.75 0.05 percent [+]
Germany 0.05 Jan/15 0.05 4.75 0.05 percent [+]
India 7.75 Jan/15 8.00 14.50 4.25 percent [+]
Indonesia 7.75 Jan/15 7.75 12.75 5.75 percent [+]
Italy 0.05 Jan/15 0.05 4.75 0.05 percent [+]
Japan 0.00 Jan/15 0.00 9.00 0.00 percent [+]
Mexico 3.00 Dec/14 3.00 9.25 3.00 percent [+]
Netherlands 0.05 Jan/15 0.05 4.75 0.05 percent [+]
Russia 17.00 Dec/14 9.50 17.00 5.00 percent [+]
South Korea 2.00 Jan/15 2.00 5.25 2.00 percent [+]
Spain 0.05 Jan/15 0.05 4.75 0.05 percent [+]
Switzerland -0.75 Jan/15 -0.25 3.50 -0.75 percent [+]
Turkey 7.75 Jan/15 8.25 500.00 4.50 percent [+]
United Kingdom 0.50 Aug/15 0.50 17.00 0.50 percent [+]
United States 0.25 Dec/14 0.25 20.00 0.25 percent [+]