Euro Area Interest Rate

The benchmark interest rate In the Euro Area was last recorded at 0.25 percent. Interest Rate In the Euro Area is reported by the European Central Bank. . 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. 2014-04-25

Actual Previous Highest Lowest Forecast Dates Unit Frequency
0.25 0.25 4.75 0.25 0.25 | 2014/06 1998 - 2014 Percent Monthly

TO

Euro Area Interest Rate
LIST BY COUNTRY


CALENDAR GMT Country Event Reference Actual Previous Consensus Forecast
2014-01-09 12:45 PM Euro Area
ECB Interest Rate Decision
0.25% 0.25% 0.25% 0.25%
2014-02-06 12:45 PM Euro Area
ECB Interest Rate Decision
0.25% 0.25% 0.25% 0.25%
2014-02-12 03:30 PM Euro Area
ECB President Draghi's Speech
2014-03-06 12:45 PM Euro Area
ECB Interest Rate Decision
0.25% 0.25% 0.25% 0.25%
2014-03-06 01:30 PM Euro Area
ECB Press Conference
2014-03-13 05:00 PM Euro Area
ECB President Draghi's Speech
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Money Last Previous Highest Lowest Forecast Unit
Foreign Exchange Reserves 338987.00 2014-02-28 337926.00 338987.00 178392.00 333789.86 2014-02-28 USD Million [+]
Interbank Rate 0.31 2014-03-15 0.29 11.82 0.19 0.25 2014-02-28 Percent [+]
Loans to Private Sector 10544849.00 2014-02-28 10561134.00 11104492.00 3241223.00 10509872.51 2014-02-28 EUR Billion [+]
Money Supply M1 5493181.00 2014-02-28 5454791.00 5493181.00 444072.00 5521447.89 2014-02-28 EUR Million [+]
Money Supply M2 9273330.00 2014-02-28 9247912.00 9273330.00 1070326.00 9302143.19 2014-02-28 EUR Million [+]
Money Supply M3 9917831.00 2014-02-28 9898111.00 9917831.00 1097365.00 9930289.57 2014-02-28 EUR Billion [+]
Central Bank Balance Sheet 2167801.00 2014-04-18 2152103.00 3102227.00 667622.00 2049116.46 2014-05-31 EUR Million [+]
Interest Rate 0.25 2014-04-03 0.25 4.75 0.25 0.25 2014-06-30 Percent [+]
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ECB Holds Rates Steady

At its April 3rd meeting, the ECB left the benchmark interest rate unchanged at a record low 0.25 percent, as widely expected, despite deflation fears. The interest rate on the marginal lending facility and the deposit facility were also left unchanged at 0.75 percent and 0.00 percent, respectively.

Excerpt from the statement 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. Incoming information confirms that the moderate recovery of the euro area economy is proceeding in line with our previous assessment. At the same time, recent information remains consistent with our expectation of a prolonged period of low inflation followed by a gradual upward movement in HICP inflation rates. The signals from the monetary analysis confirm the picture of subdued underlying price pressures in the euro area over the medium term. 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%.

Looking ahead, we will monitor developments very closely and will consider all instruments available to us. We are resolute in our determination to maintain a high degree of monetary accommodation and to act swiftly if required. Hence, we do not exclude further monetary policy easing and we firmly reiterate that we continue to expect the key ECB interest rates to remain at present or lower levels for an extended period of time. This expectation is based on an overall subdued outlook for inflation extending into the medium term, given the broad-based weakness of the economy, the high degree of unutilised capacity and subdued money and credit creation. At the same time, we are closely following developments on money markets. The Governing Council is unanimous in its commitment to using also unconventional instruments within its mandate in order to cope effectively with risks of a too prolonged period of low inflation.

The risks surrounding the economic outlook for the euro area continue to be on the downside. Developments in global financial markets and in emerging market economies, as well as geopolitical risks, may have the potential to affect economic conditions negatively. Other downside risks include weaker than expected domestic demand and insufficient implementation of structural reforms in euro area countries, as well as weaker export growth.

To sum up, the economic analysis confirms our expectation of a prolonged period of low inflation followed by a gradual upward movement in HICP inflation rates towards levels closer to 2%. A cross-check with the signals from the monetary analysis confirms the picture of subdued underlying price pressures in the euro area over the medium term.

The Governing Council sees both upside and downside risks to the outlook for price developments as limited and broadly balanced over the medium term. In this context, the possible repercussions of both geopolitical risks and exchange rate developments will be monitored closely. 

ECB | Joana Taborda | joana.taborda@tradingeconomics.com
4/3/2014 2:08:27 PM

RECENT RELEASES

ECB Keeps Monetary Policy on Hold
At its March 6th meeting, the ECB left main rates unchanged for the fourth month in a row in spite of inflation running at less than half its target of 2 percent. Published on 2014-03-06

ECB Leaves Rates on Hold
The Governing Council of the ECB decided on February 6th to keep rates on hold for the third straight meeting, despite a fresh fall in inflation in January. 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 0.25%, 0.75% and 0.00% respectively. Published on 2014-02-06


Interest Rate | Notes
The interest rate shown on this page refers to the central bank benchmark interest rate. Usually, the central bank benchmark interest rate is the overnight rate at which central banks make loans to the commercial banks under their jurisdiction. Moving the benchmark interest rate, the central bank is able to make an impact on interest rates of commercial banks, inflation level of the country and national currency exchange rate. Reduction of interest rates should bring increase in business activity, a rise in inflation rate and weakening of national currency. In case of increase in interest rates the level of business activity is likely to drop, inflation declines and national currency strengthens.


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