Euro Area Interest Rate  1998-2018 | Data | Chart | Calendar | Forecast

The ECB held its benchmark refinancing rate at 0 percent on June 14th and said the monthly pace of the net asset purchases will be reduced to €15 billion from September to December 2018, and will then end. The central bank also said it expects key interest rates to remain unchanged at least through the summer of 2019. Interest Rate in the Euro Area averaged 2.01 percent from 1998 until 2018, reaching an all time high of 4.75 percent in October of 2000 and a record low of 0 percent in March of 2016.

Euro Area Interest Rate
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ECB Rates Set to Remain at Current Levels as Long as Needed


ECB officials agreed that policy rates would be kept at their present levels at least through the summer of 2019 and in any case for as long as necessary to ensure that the evolution of inflation remained aligned with a sustained adjustment path, minutes from the ECB's June meeting showed. Also, policymakers noted that, although the risks surrounding the euro area growth outlook had remained broadly balanced overall, risks related to global factors, including the threat of increased protectionism, had become more prominent.

Excerpts from the Account of the monetary policy meeting of the Governing Council of the European Central Bank, held in Riga on Wednesday and Thursday, 13-14 June 2018:

Overall, the proposed formulation, indicating the Governing Council’s expectation that policy rates would be kept at their present levels at least through the summer of 2019 and in any case for as long as necessary to ensure that the evolution of inflation remained aligned with a sustained adjustment path, was seen to strike a good balance between providing sufficiently precise guidance and maintaining adequate flexibility. The proposed state-contingent component of the forward guidance on policy rates was widely seen as underlining the gradual and data-dependent approach to policy normalisation. In this regard, explicitly linking a first policy rate rise to inflation evolving along a sustained adjustment path was seen as consistent with the ECB’s forward-looking and medium-term-oriented monetary policy strategy and would underscore the credibility of the Governing Council’s commitment to its price stability objective.

Against this background, members agreed with the communication proposals made by Mr Praet in his introduction. It needed to be emphasised that, while the incoming data had been somewhat weaker than previously expected, the fundamentals remained in place for the medium-term growth outlook to remain solid and broad-based, as also embodied in the June 2018 Eurosystem staff projections. Accordingly, it needed to be highlighted that the underlying strength of the euro area expansion, together with rising price pressures, well-anchored inflation expectations and the continuing ample degree of monetary accommodation, provided grounds for confidence in the sustained convergence of inflation. At the same time, it had to be acknowledged that, although the risks surrounding the euro area growth outlook had remained broadly balanced overall, the incoming information suggested some downside risks to the short-term growth outlook, while risks related to global factors, including the threat of increased protectionism, had become more prominent.

More broadly, it needed to be reiterated that significant monetary policy stimulus was still needed for a continued and sustained adjustment in the path of inflation. It also deserved to be emphasised that, following the phasing-out of the remaining net asset purchases by the end of the year, ample monetary accommodation would still be provided by the sizeable stock of acquired assets and the associated reinvestments, together with the enhanced forward guidance on the key ECB interest rates. In this context, it was important to highlight that, even after a termination of the net asset purchases under the APP, monetary policy would continue to be very accommodative. In particular, it could be stressed that the intention to reinvest principal payments from maturing securities for an extended period of time would still imply a very significant presence in euro area private and public sector bond markets.

Regarding the enhanced forward guidance on policy interest rates, it was felt that the open-ended character of the state-contingent component should be emphasised, with policy rates expected to remain at their present levels for as long as necessary to ensure that the evolution of inflation remained aligned with the Governing Council’s current expectations of a sustained adjustment in the path of inflation, thereby underlining the Governing Council’s consistent and predictable “reaction function” in the pursuit of its medium-term price stability objective.


ECB | Joana Ferreira | joana.ferreira@tradingeconomics.com
7/12/2018 12:02:07 PM



Calendar GMT Actual Previous Consensus TEForecast
2018-03-08 12:45 PM ECB Interest Rate Decision 0% 0% 0% 0.0%
2018-04-26 11:45 AM ECB Interest Rate Decision 0% 0% 0% 0.0%
2018-06-14 11:45 AM ECB Interest Rate Decision 0.0% 0.0% 0.0% 0.0%
2018-07-26 11:45 AM ECB Interest Rate Decision 0.0% 0.0%
2018-07-26 12:30 PM ECB Press Conference
2018-09-13 11:45 AM ECB Interest Rate Decision 0.0%


Euro Area Money Last Previous Highest Lowest Unit
Interest Rate 0.00 0.00 4.75 0.00 percent [+]
Interbank Rate -0.36 -0.36 5.39 -0.39 percent [+]
Money Supply M1 7977746.00 7874787.00 7977746.00 444118.00 EUR Million [+]
Money Supply M2 11406313.00 11303833.00 11406313.00 1070365.00 EUR Million [+]
Money Supply M3 12047276.00 11968071.00 12047276.00 1097238.00 EUR Million [+]
Foreign Exchange Reserves 66.84 64.58 70.57 34.91 USD Billion [+]
Central Bank Balance Sheet 4585571.00 4578465.00 4585571.00 692641.00 EUR Million [+]
Loans to Private Sector 11008903.00 10964024.00 11106677.00 3241298.00 EUR Million [+]
Deposit Interest Rate -0.40 -0.40 3.75 -0.40 percent [+]
Lending Rate 0.25 0.25 5.75 0.25 percent [+]
Loan Growth 2.90 2.90 9.90 -0.30 percent [+]


Euro Area Interest Rate

In the Euro Area, benchmark interest rate is set by the Governing Council of the European Central Bank. The primary objective of the ECB’s monetary policy is to maintain price stability which is to keep inflation below, but close to 2 percent over the medium term. In times of prolonged low inflation and low interest rates, ECB may also adopt non-standard monetary policy measures, such as asset purchase programmes. The official interest rate is the Main refinancing operations rate. . This page provides - Euro Area Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Euro Area Interest Rate - actual data, historical chart and calendar of releases - was last updated on July of 2018.

Actual Previous Highest Lowest Dates Unit Frequency
0.00 0.00 4.75 0.00 1998 - 2018 percent Daily




interest rate by Country
Country Last
Turkey 17.75 Jun/18
Mexico 7.75 Jun/18
Russia 7.25 Jun/18
Brazil 6.50 Jun/18
India 6.25 Jun/18
Indonesia 5.25 Jun/18
China 4.35 Jun/18
United States 2.00 Jun/18
Australia 1.50 Jul/18
Canada 1.50 Jul/18
South Korea 1.50 Jul/18
United Kingdom 0.50 Jul/18
Euro Area 0.00 Jun/18
France 0.00 Jun/18
Germany 0.00 Jun/18
Italy 0.00 Jun/18
Netherlands 0.00 Jun/18
Spain 0.00 Jun/18
Japan -0.10 Jun/18
Switzerland -0.75 Jun/18


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