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

The benchmark interest rate In the Euro Area was last recorded at 0.05 percent. Interest Rate in the Euro Area averaged 2.34 percent from 1998 until 2015, 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.

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Euro Area Interest Rate
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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 Friday, May 29, 2015.

Calendar GMT Reference Actual Previous Consensus Forecast (i)
2015-05-22 09:00 AM
2015-05-23 02:30 PM
2015-05-28 10:00 AM
2015-06-03 12:45 PM 0.05% 0.05%
2015-06-03 01:30 PM
2015-07-16 12:45 PM 0%


ECB Urges for Structural Reforms


ECB President Mario Draghi said structural reforms that reverse the downward drift in potential growth are now vital for the Euro Area and encouraged governments to take further steps to reform their economies in a speech at the ECB annual forum.

Excerpts from the Introductory speech by Mario Draghi on ECB Forum on Central Banking Sintra, 22 May 2015 22 May 2015:

Structural and cyclical policies – including monetary policy – are heavily independent. Structural reforms increase both potential output and the resilience of the economy to shocks. This makes structural reforms relevant for any central bank, but especially in a monetary union.

For members of monetary union resilience is crucial to avoid that shocks lead to consistently higher unemployment, and over time, permanent economic divergence. It therefore has direct implications for price stability, and is no less relevant for the integrity of the euro area. This is why the ECB has frequently called for stronger common governance of structural reforms that would make resilience part of our common DNA.

Structural reforms are equally important for their effect on growth. Potential growth is today estimated to be below 1% in the euro area and is projected to remain well below pre-crisis growth rates. This would mean that a significant share of the economic losses in the crisis would become permanent, with structural unemployment staying above 10% and youth unemployment elevated. It would also make it harder to work through the debt overhang still present in some countries. Finally, low potential growth can have a direct impact on the tools available to monetary policy, as it increases the likelihood that the central bank runs into the lower bound and has to resort recurrently to unconventional policies to meet its mandate.

The euro area’s weak long-term performance also provides an opportunity. Since many economies are distant from the frontier of best practice, the gains from structural reforms are easier to achieve and the potential magnitude of those gains is greater. There is a large untapped potential in the euro area for substantially higher output, employment and welfare. And the fact that monetary policy is today at the lower bound, and the recovery still fragile, is not, as some argue, a reason for reforms to be delayed.

This is because the short-term costs and benefits of reforms depend critically on how they are implemented. If structural reforms are credible, their positive effects can be felt quickly even in a weak demand environment. The same is true if the type of reforms is carefully chosen. And our accommodative monetary policy means that the benefits of reforms will materialise faster, creating the ideal conditions for them to succeed. It is the combination of these demand and supply policies that will deliver lasting stability and prosperity.

The economic outlook for the euro area is brighter today than it has been for seven long years. Monetary policy is working its way through the economy. Growth is picking up. And inflation expectations have recovered from their trough.

This is by no means the end of our challenges, and a cyclical recovery alone does not solve all of Europe’s problems. It does not eliminate the debt overhang that affects parts of the Union. It does not eliminate the high level of structural unemployment that haunts too many countries. And it does not eliminate the need for perfecting the institutional set-up of our monetary union.

But what the cyclical recovery does achieve is to provide near perfect conditions for governments to engage more systematically in the structural reforms that will anchor the return to growth. Monetary policy can steer the economy back to its potential. Structural reform can raise that potential. And it is the combination of these demand and supply policies that will deliver lasting stability and prosperity.

ECB | Joana Taborda | joana.taborda@tradingeconomics.com
5/22/2015 10:48:23 AM


Recent Releases

ECB Says QE Working
The ECB considers its bond-buying program is working as intended but stressed a strong signal needs to be sent to Euro Area governments urging them to press with structural reforms, minutes from latest April meeting showed. Published on 2015-05-21

ECB Pledges to Increase Bond Buying in May and June
The ECB would increase asset purchases in May and June to account for lower market liquidity in the summer holidays in July and August, Benoît Cœuré an executive board member said during the speech in London on May 18th. Published on 2015-05-19


Euro Area Money Last Previous Highest Lowest Unit
Interest Rate 0.05 0.05 4.75 0.05 percent [+]
Interbank Rate 0.00 0.02 11.82 0.00 percent [+]
Money Supply M1 6192401.00 6165701.00 6192401.00 444072.00 EUR Million [+]
Money Supply M2 9860745.00 9830039.00 9860745.00 1070326.00 EUR Million [+]
Money Supply M3 10546572.00 10483774.00 10546572.00 1097365.00 EUR Million [+]
Central Bank Balance Sheet 2377854.00 2360790.00 3102227.00 692641.00 EUR Million [+]
Foreign Exchange Reserves 330953.00 333274.00 340247.00 178392.00 USD Million [+]
Loans to Private Sector 10617079.00 10595801.00 11104492.00 3241223.00 EUR Million [+]
Loan Growth 0.00 0.10 11.40 -2.30 percent [+]


Interest Rate Reference Previous Highest Lowest Unit
Australia 2.00 May/15 2.25 17.50 2.00 percent [+]
Brazil 13.25 Apr/15 12.75 45.00 7.25 percent [+]
Canada 0.75 May/15 0.75 16.00 0.25 percent [+]
China 5.10 May/15 5.35 10.98 5.10 percent [+]
Euro Area 0.05 Apr/15 0.05 4.75 0.05 percent [+]
France 0.05 Apr/15 0.05 4.75 0.05 percent [+]
Germany 0.05 Apr/15 0.05 4.75 0.05 percent [+]
India 7.50 Apr/15 7.50 14.50 4.25 percent [+]
Indonesia 7.50 May/15 7.50 12.75 5.75 percent [+]
Italy 0.05 Apr/15 0.05 4.75 0.05 percent [+]
Japan 0.00 May/15 0.00 9.00 0.00 percent [+]
Mexico 3.00 Apr/15 3.00 9.25 3.00 percent [+]
Netherlands 0.05 Apr/15 0.05 4.75 0.05 percent [+]
Russia 12.50 Apr/15 14.00 17.00 5.00 percent [+]
South Korea 1.75 May/15 1.75 5.25 1.75 percent [+]
Spain 0.05 Apr/15 0.05 4.75 0.05 percent [+]
Switzerland -0.75 Apr/15 -0.75 3.50 -0.75 percent [+]
Turkey 7.50 May/15 7.50 500.00 4.50 percent [+]
United Kingdom 0.50 May/15 0.50 17.00 0.50 percent [+]
United States 0.25 Apr/15 0.25 20.00 0.25 percent [+]