Euro Area Interest Rate 1998-2014 | 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 2.40 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 - 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 Sunday, November 23, 2014.


ECB Considers Buying Sovereign Bonds


The European Central Bank pledged it is ready to buy government bonds if inflation in the Euro Area fails to rise as anticipated, president Mario Draghi said in a speech during the European Parliament’s Economic and Monetary Affairs Committee meeting.

Extracts from the Speech by ECB President Mario Draghi at the EP’s Economic and Monetary Affairs Committee:

The euro area growth momentum has weakened over the summer months and most recent forecasts have been revised downwards. At the same time, our expectation for a moderate recovery in 2015 and 2016 remains in place. 

Risks to the economic outlook continue to be on the downside. In particular, the weakening in the euro area’s growth momentum, alongside heightened geopolitical risks, could dampen confidence and, in particular, private investment. In addition, insufficient progress in structural reforms in euro area countries constitutes a key downward risk to the economic outlook.

In this context, let me emphasise that we are committed to scale the total magnitude of our measures – lending operations as well as outright purchases – up to a size that can deliver the intended support to inflation and the recovery of the euro area economy. All these measures will have a sizeable impact on our balance sheet, which we expect to move towards its early 2012 dimension. This will ensure that our accommodative monetary policy stance will contribute to a gradual recovery and a return of inflation rates in the medium term to levels closer to our aim of below but close to 2%.

Nonetheless, we need to remain alert to possible downside risks to our outlook for inflation, in particular against the background of a weakening growth momentum and continued subdued monetary and credit dynamics. We therefore need to closely monitor and continuously assess the appropriateness of our monetary policy stance. If 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. In this context, we have also tasked relevant ECB staff and Eurosystem committees with the timely preparation of further measures to be implemented, if needed. Such measures could include further changes to the size and composition of the Eurosystem balance sheet, if warranted to achieve price stability over the medium term.

Monetary policy alone – however – cannot overcome financial fragmentation in the euro area. Fragmentation across national borders also reflects underlying national imbalances and institutional deficiencies.

Overcoming these require determined structural reforms on the side of national governments to improve the business environment and setting incentives to invest, with the aim to boost productivity, create new jobs and raise the growth potential of the economy.

2014 has been a year of profound change. But what has been achieved so far is not enough. 2015 needs to be the year when all actors in the euro area, governments and European institutions alike, will deploy a consistent common strategy to bring our economies back on track. Monetary policy alone will not be able to achieve this. This is why there is an urgent need to agree on concrete short-term commitments for structural reforms in the Member States, on a consequent application of the Stability and Growth Pact, on the aggregate fiscal stance for the euro area, on a strategy for investment, and to launch work on a long-term vision to further share sovereignty ensuring the sustainable and smooth functioning of EMU

ECB | Joana Taborda | joana.taborda@tradingeconomics.com
11/17/2014 10:27:04 PM


Recent Releases

ECB Leaves Rates Unchanged
The European Central Bank left its benchmark interest rate unchanged at a record low 0.05 percent on November 6th. Policymakers also said further stimulus measures were being prepared for use if needed. Published on 2014-11-06

25 Banks Fail ECB Stress Test
On October 26th, 2014 the European Central Bank published the results of a year-long examination of the resilience of the 130 largest banks in the euro area as of 31 December 2013. The so-called stress tests found a capital shortfall of € 25 billion at 25 banks. Published on 2014-10-27


Calendar GMT Event Actual Previous Consensus Forecast (i)
2014-10-26 12:00 PM
Bank Stress Tests Results 
0.05%
2014-11-06 12:45 PM
ECB Interest Rate Decision 
0.05% 0.05% 0.05% 0.05%
2014-11-06 01:30 PM
ECB Press Conference 
2014-12-04 12:45 PM
ECB Interest Rate Decision 
0.05% 0%
2014-12-04 01:30 PM
ECB Press Conference 
0.01%


Euro Area Money Last Previous Highest Lowest Unit
Interest Rate 0.05 0.05 4.75 0.05 percent [+]
Interbank Rate 0.08 0.09 11.82 0.08 percent [+]
Money Supply M1 5693668.00 5658499.00 5693668.00 444072.00 EUR Million [+]
Money Supply M2 9496611.00 9453848.00 9496611.00 1070326.00 EUR Million [+]
Money Supply M3 10107719.00 10062732.00 10107719.00 1097365.00 EUR Billion [+]
Central Bank Balance Sheet 2028156.00 2052070.00 3102227.00 692641.00 EUR Million [+]
Foreign Exchange Reserves 330113.00 329372.00 340247.00 178392.00 USD Million [+]
Loans to Private Sector 10446219.00 10435354.00 11104492.00 3241223.00 EUR Million [+]