The ECB decided to keep interest rates unchanged in July 2024, as expected, as current data supports their previous inflation outlook. The main refinancing operations rate remained at 4.25%, the deposit facility rate at 3.75%, and the marginal lending rate at 4.5%. Some inflation indicators rose in May due to temporary factors, but most stabilized or fell in June. High wage growth's inflationary impact has been mitigated by profits, and monetary policy remains restrictive. Despite this, domestic price pressures and services inflation are still high, with overall inflation expected to stay above target into next year. The Council aims to return inflation to 2% and will maintain restrictive policy rates as needed. Decisions on rates will depend on ongoing economic data, underlying inflation trends, and the effectiveness of monetary policy. The Council is flexible and will adjust rates based on evolving data, without committing to a fixed path. source: European Central Bank
The benchmark interest rate In the Euro Area was last recorded at 4.25 percent. Interest Rate in Euro Area averaged 1.84 percent from 1998 until 2024, reaching an all time high of 4.75 percent in October of 2000 and a record low of 0.00 percent in March of 2016. This page provides - Euro Area Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Euro Area Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on September of 2024.
The benchmark interest rate In the Euro Area was last recorded at 4.25 percent. Interest Rate in Euro Area is expected to be 4.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Euro Area Interest Rate is projected to trend around 2.50 percent in 2025 and 2.25 percent in 2026, according to our econometric models.
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.
| Actual | Previous | Highest | Lowest | Dates | Unit | Frequency | ||
|---|---|---|---|---|---|---|---|---|
| 4.25 | 4.25 | 4.75 | 0.00 | 1998 - 2024 | percent | Daily |
News Stream
ECB Postpones Rate Cut Decision Until September
At their July meeting, European Central Bank policymakers decided not to rush into cutting interest rates, preferring to wait until September to reassess their policy stance, according to the meeting's accounts. The ECB left rates unchanged in July and provided little guidance on future policy actions, despite growing market expectations for a rate cut on September 12. Policymakers noted the challenge of gradually easing restrictive policy without harming the economy by keeping rates too high for too long. The accounts indicated that the September meeting would be an ideal time to re-evaluate the level of monetary policy restriction, emphasizing the importance of approaching that meeting with an open mind. This cautious approach reflects the ECB's desire to balance economic support with inflation control.
2024-08-22
ECB Keeps Rates Steady
The ECB decided to keep interest rates unchanged in July 2024, as expected, as current data supports their previous inflation outlook. The main refinancing operations rate remained at 4.25%, the deposit facility rate at 3.75%, and the marginal lending rate at 4.5%. Some inflation indicators rose in May due to temporary factors, but most stabilized or fell in June. High wage growth's inflationary impact has been mitigated by profits, and monetary policy remains restrictive. Despite this, domestic price pressures and services inflation are still high, with overall inflation expected to stay above target into next year. The Council aims to return inflation to 2% and will maintain restrictive policy rates as needed. Decisions on rates will depend on ongoing economic data, underlying inflation trends, and the effectiveness of monetary policy. The Council is flexible and will adjust rates based on evolving data, without committing to a fixed path.
2024-07-18
ECB to Keep Rates Steady, Eyes on Future Guidance
The ECB is widely expected to keep interest rates steady during its July 2024 meeting, after cutting rates by 25 basis points in June, the first decrease since 2016. It is expected that the main refinancing operations rate will remain at 4.25%, the deposit facility rate at 3.75%, and the marginal lending rate at 4.5%. Traders will closely monitor any hints about further interest rate cuts, although policymakers are unlikely to provide clear guidance. The central bank has adopted a cautious approach, hesitant to cut rates further until they are more confident that inflation will reach the 2% target by 2025. Inflation in the Euro Area edged lower to 2.5% in June from 2.6% in May. Most investors continue to bet on two more quarter-point rate cuts later this year, probably in September and December.
2024-07-18
