The ECB slashed the deposit interest rate by 10bps and approved a new round of bond purchases at a monthly pace of €20 billion as from November 1st during its September meeting. The move came in as an attempt to boost growth and inflation amid global trade tensions and Brexit uncertainty. Deposit Interest Rate in the Euro Area averaged 1.27 percent from 1999 until 2019, reaching an all time high of 3.75 percent in October of 2000 and a record low of -0.50 percent in September of 2019.
Deposit Interest Rate in Euro Area is expected to be -0.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Deposit Interest Rate in Euro Area to stand at -0.50 in 12 months time. In the long-term, the Euro Area Deposit Facilty Rate is projected to trend around -0.25 percent in 2020, according to our econometric models.