Euro Area Interest Rate

The benchmark interest rate In the Euro Area was last recorded at 0.15 percent. Interest Rate in Euro Area averaged 2.44 Percent from 1998 until 2014, reaching an all time high of 4.75 Percent in October of 2000 and a record low of 0.15 Percent in June of 2014. Interest Rate in Euro Area is reported by the European Central Bank.


Euro Area Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
0.15 0.15 4.75 0.15 1998 - 2014 Percent Monthly
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.

ECB Leaves Rates on Hold

At its July 3rd meeting, the European Central Bank left its key refinancing rate on hold at 0.15 percent, following last month’s cut, despite persistently low inflation.

The interest rates on the marginal lending facility and the deposit facility were also left unchanged at 0.40 percent and -0.10 percent respectively.

In June, Euro Area annual inflation rate is expected to be 0.5 percent, the same as recorded in May and well below the 2 percent ECB target. The unemployment rate was also steady in May at 11.6 percent. 

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

Based on our regular economic and monetary analyses, we decided to keep the key ECB interest rates unchanged. The latest information signals that the euro area economy continued its moderate recovery in the second quarter, with low rates of inflation and subdued monetary and credit growth. At the same time, inflation expectations for the euro area over the medium to long term continue to be firmly anchored in line with our aim of maintaining inflation rates below, but close to, 2%. The combination of monetary policy measures decided last month has already led to a further easing of the monetary policy stance. The monetary operations to take place over the coming months will add to this accommodation and will support bank lending. As our measures work their way through to the economy, they will contribute to a return of inflation rates to levels closer to 2%. Concerning our forward guidance, the key ECB interest rates will remain at present levels for an extended period of time in view of the current outlook for inflation. Moreover, the Governing Council is unanimous in its commitment to also using unconventional instruments within its mandate, should it become necessary to further address risks of too prolonged a period of low inflation. We are strongly determined to safeguard the firm anchoring of inflation expectations over the medium to long term.

As a follow-up to the decisions taken in early June, the Governing Council today also decided on specific modalities for the targeted longer-term refinancing operations (TLTROs). The aim of the TLTROs is to enhance the functioning of the monetary policy transmission mechanism by supporting lending to the real economy. A press release on the modalities for the TLTROs will be published today at 3.30 p.m. As announced last month, we have also started to intensify preparatory work related to outright purchases in the ABS market to enhance the functioning of the monetary policy transmission mechanism.

Joana Taborda |
7/3/2014 1:50:49 PM

Recent Releases

ECB Cuts Rates to Record Low
At its June 5th meeting, the European Central Bank cut the main refinancing rate by 10 bps to 0.15 percent and the deposit rate to -0.1 percent, becoming the first major central bank to use negative interest rates. Published on 2014-06-05

ECB Leaves Rates on Hold, Hints Monetary Loosening in June
At its May 8th meeting, the European Central Bank left its main interest rate unchanged at 0.25 percent for the sixth month in a row. However, during the press conference, ECB President Draghi said the bank may loosen monetary policy next month to combat persistently low inflation in the eurozone. Published on 2014-05-08

Calendar GMT Country Event Reference Actual Previous Consensus Forecast
2014-04-03 12:45 PM Euro Area
ECB Interest Rate Decision
0.25% 0.25% 0.25% 0.25%
2014-04-03 01:30 PM Euro Area
ECB Press Conference
2014-05-08 12:45 PM Euro Area
ECB Interest Rate Decision
0.25% 0.25% 0.25% 0.25%
2014-05-08 01:30 PM Euro Area
ECB Press Conference
2014-06-05 12:45 PM Euro Area
ECB Interest Rate Decision
0.15% 0.25% 0.1% 0.1%

Money Last Previous Highest Lowest Unit
Interest Rate 0.15 0.15 4.75 0.15 Percent [+]
Interbank Rate 0.24 0.32 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 2062474.00 2088099.00 3102227.00 667622.00 EUR Million [+]
Foreign Exchange Reserves 340214.00 339784.00 340214.00 178392.00 USD Million [+]
Loans to Private Sector 10470142.00 10494782.00 11104492.00 3241223.00 EUR Billion [+]

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