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

European Central Bank Lowers Benchmark Interest Rate to 0.05 Percent, Cuts Deposit Facility to -0.2 Percent


Euro Area Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
0.05 0.15 4.75 0.05 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. Content for - Euro Area Interest Rate - was last refreshed on Monday, September 22, 2014.

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.

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

Based on our regular economic and monetary analyses, the Governing Council decided today to lower the interest rate on the main refinancing operations of the Eurosystem by 10 basis points to 0.05% and the rate on the marginal lending facility by 10 basis points to 0.30%. The rate on the deposit facility was lowered by 10 basis points to -0.20%. In addition, the Governing Council decided to start purchasing non-financial private sector assets. The Eurosystem will purchase a broad portfolio of simple and transparent asset-backed securities (ABSs) with underlying assets consisting of claims against the euro area non-financial private sector under an ABS purchase programme (ABSPP). This reflects the role of the ABS market in facilitating new credit flows to the economy and follows the intensification of preparatory work on this matter, as decided by the Governing Council in June. In parallel, the Eurosystem will also purchase a broad portfolio of euro-denominated covered bonds issued by MFIs domiciled in the euro area under a new covered bond purchase programme (CBPP3). Interventions under these programmes will start in October 2014. The detailed modalities of these programmes will be announced after the Governing Council meeting of 2 October 2014. The newly decided measures, together with the targeted longer-term refinancing operations which will be conducted in two weeks, will have a sizeable impact on our balance sheet.

These decisions will add to the range of monetary policy measures taken over recent months. In particular, they will support our forward guidance on the key ECB interest rates and reflect the fact that there are significant and increasing differences in the monetary policy cycle between major advanced economies. They will further enhance the functioning of the monetary policy transmission mechanism and support the provision of credit to the broad economy. In our analysis, we took 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. Today’s decisions, together with the other measures in place, have been taken with a view to underpinning 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 our measures work their way through to the economy they will contribute to a return of inflation rates to levels closer to 2%. 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.

ECB | Joana Taborda |
9/4/2014 2:09:03 PM

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

Money Last Previous Highest Lowest Unit
Interest Rate 0.05 0.15 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 667622.00 EUR Million [+]
Foreign Exchange Reserves 340247.00 340214.00 340247.00 178392.00 USD Million [+]
Loans to Private Sector 10437366.00 10470142.00 11104492.00 3241223.00 EUR Million [+]

Interest Rate Reference Previous Highest Lowest Unit
Australia 2.50 Sep/14 2.50 17.50 2.50 Percent [+]
Brazil 11.00 Sep/14 11.00 45.00 7.25 Percent [+]
Canada 1.00 Sep/14 1.00 16.00 0.25 Percent [+]
China 6.00 Aug/14 6.00 10.98 5.31 Percent [+]
Euro Area 0.05 Sep/14 0.15 4.75 0.05 Percent [+]
France 0.05 Sep/14 0.15 4.75 0.05 Percent [+]
Germany 0.05 Sep/14 0.15 4.75 0.05 Percent [+]
India 8.00 Aug/14 8.00 14.50 4.25 Percent [+]
Indonesia 7.50 Sep/14 7.50 12.75 5.75 Percent [+]
Italy 0.05 Sep/14 0.15 4.75 0.05 Percent [+]
Japan 0.00 Sep/14 0.00 9.00 0.00 Percent [+]
Mexico 3.00 Sep/14 3.00 9.25 3.00 Percent [+]
Netherlands 0.05 Sep/14 0.15 4.75 0.05 Percent [+]
Russia 8.00 Sep/14 8.00 10.50 5.00 Percent [+]
South Korea 2.25 Sep/14 2.25 5.25 2.00 Percent [+]
Spain 0.05 Sep/14 0.15 4.75 0.05 Percent [+]
Switzerland 0.00 Sep/14 0.00 3.50 0.00 Percent [+]
Turkey 8.25 Aug/14 8.25 500.00 4.50 Percent [+]
United Kingdom 0.50 Sep/14 0.50 17.00 0.50 Percent [+]
United States 0.25 Sep/14 0.25 20.00 0.25 Percent [+]

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