Euro Area Interest Rate 1998-2014 | Data | Chart | Calendar | Forecast

European Central Bank Leaves Benchmark Interest Rate Unchanged at 0.05 Percent.

   
 
 

Euro Area Interest Rate


Actual Previous Highest Lowest Dates Unit Frequency
0.05 0.05 4.75 0.05 1998 - 2014 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 Saturday, October 25, 2014.


ECB Leaves Rates on Hold, Shifts to Asset Buying


The European Central Bank left its benchmark interest rate on hold at 0.05 percent at its October 2nd meeting, following a 10 bps cut last month. Policymakers also decided to unveil the specifics of a plan to buy asset-backed securities and covered bonds.

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

Based on our regular economic and monetary analyses, and in line with our forward guidance, we decided to keep the key ECB interest rates unchanged. Following up on the decisions of 4 September 2014, we also decided on the key operational details of both the asset-backed securities purchase programme and the new covered bond purchase programme.

This will allow us to start purchasing covered bonds and asset-backed securities (ABSs) in the fourth quarter of 2014, starting with covered bonds in the second half of October. The programmes will last for at least two years. Together with the series of targeted longer-term refinancing operations to be conducted until June 2016, these purchases will have a sizeable impact on our balance sheet.

The new measures will support specific market segments that play a key role in the financing of the economy. They will thereby further enhance the functioning of the monetary policy transmission mechanism, facilitate credit provision to the broad economy and generate positive spillovers to other markets. Taking into account the overall subdued outlook for inflation, the weakening in the euro area’s growth momentum over the recent past and the continued subdued monetary and credit dynamics, our asset purchases should ease the monetary policy stance more broadly. They should also strengthen 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.

Together with the monetary accommodation already in place, the determined implementation of the new measures will underpin the firm anchoring of medium to long-term inflation expectations, in line with our aim of maintaining inflation rates below, but close to, 2%. As all our measures work their way through to the economy they will contribute to a return of inflation rates to levels closer to our aim. Should it become necessary to further address risks of too prolonged a period of low inflation, the Governing Council is unanimous in its commitment to using additional unconventional instruments within its mandate.

To sum up, a cross-check of the outcome of the economic analysis with the signals coming from the monetary analysis confirms the recent decisions taken by the Governing Council to provide further monetary policy accommodation and to support lending to the real economy.


ECB | Joana Taborda | joana.taborda@tradingeconomics.com
10/2/2014 7:12:18 PM


Recent Releases

ECB Cuts Rates to Record Low
At its September 4th meeting, the European Central Bank lowered the main refinancing rate by 10 bps to 0.05 percent and cut the deposit facility rate to -0.2 percent from -0.1 percent. The ECB also announced it would start buying securitized debt and covered bonds to ease the flow of bank funding to the economy. Published on 2014-09-04

ECB President Urges for Structural Reforms
In a speech during the Economic Symposium in Jackson Hole, ECB President Mario Draghi showed concerns over high unemployment in the Euro Area and said that the strategy to reduce it has to involve both the euro area and governments. Published on 2014-08-22


Calendar GMT Country Event Reference Actual Previous Consensus Forecast
2014-07-03 12:45 PM Euro Area
ECB Interest Rate Decision
0.15% 0.15% 0.15% 0.15%
2014-07-03 01:30 PM Euro Area
ECB Press Conference
2014-07-14 06:00 PM Euro Area
ECB President Draghi's Speech
2014-08-07 12:45 PM Euro Area
ECB Interest Rate Decision
0.15% 0.15% 0.15% 0.15%
2014-08-07 01:30 PM Euro Area
ECB Press Conference


Euro Area Money Last Previous Highest Lowest Unit
Interest Rate 0.05 0.05 4.75 0.05 Percent [+]
Interbank Rate 0.20 0.24 11.82 0.19 Percent [+]
Money Supply M1 5545218.00 5530696.00 5545218.00 444072.00 EUR Million [+]
Money Supply M2 9353619.00 9330589.00 9353619.00 1070326.00 EUR Million [+]
Money Supply M3 9954844.00 9923595.00 9954844.00 1097365.00 EUR Billion [+]
Central Bank Balance Sheet 2025258.00 2044312.00 3102227.00 692641.00 EUR Million [+]
Foreign Exchange Reserves 340247.00 340214.00 340247.00 178392.00 USD Million [+]
Loans to Private Sector 10435354.00 10437366.00 11104492.00 3241223.00 EUR Million [+]