The European Central Bank held its benchmark refinancing rate at 0 percent during its April meeting and reiterated it expects key interest rates to remain at record low levels at least through the end of 2019, amid global growth concerns. The central bank also pledged to keep reinvesting cash from maturing bonds for an extended period of time. Interest Rate in the Euro Area averaged 1.94 percent from 1998 until 2019, reaching an all time high of 4.75 percent in October of 2000 and a record low of 0 percent in March of 2016.

Interest Rate in Euro Area is expected to be 0.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Euro Area to stand at 0.25 in 12 months time. In the long-term, the Euro Area Interest Rate is projected to trend around 1.25 percent in 2020, according to our econometric models.

Euro Area Interest Rate
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Calendar GMT Actual Previous Consensus TEForecast
2018-12-13 12:45 PM ECB Interest Rate Decision 0% 0% 0% 0%
2019-01-24 12:45 PM ECB Interest Rate Decision 0% 0% 0% 0%
2019-03-07 12:45 PM ECB Interest Rate Decision 0% 0% 0% 0%
2019-04-10 11:45 AM ECB Interest Rate Decision 0% 0% 0% 0%
2019-04-25 08:00 AM ECB Economic Bulletin
2019-04-25 12:30 PM ECB Guindos Speech
2019-05-08 08:00 AM ECB Non-Monetary Policy Meeting



ECB Leaves Monetary Policy Unchanged

The European Central Bank held its benchmark refinancing rate at 0 percent during its April meeting and reiterated it expects key interest rates to remain at record low levels at least through the end of 2019, amid global growth concerns. The central bank also pledged to keep reinvesting cash from maturing bonds for an extended period of time.

Excerpts from the ECB Introductory Statement:

Details on the precise terms of the new series of targeted longer-term refinancing operations (TLTROs) will be communicated at one of our forthcoming meetings. In particular, the pricing of the new TLTRO-III operations will take into account a thorough assessment of the bank-based transmission channel of monetary policy, as well as further developments in the economic outlook. In the context of our regular assessment, we will also consider whether the preservation of the favourable implications of negative interest rates for the economy requires the mitigation of their possible side effects, if any, on bank intermediation.

The information that has become available since the last Governing Council meeting in early March confirms slower growth momentum extending into the current year. While there are signs that some of the idiosyncratic domestic factors dampening growth are fading, global headwinds continue to weigh on euro area growth developments. The persistence of uncertainties, related to geopolitical factors, the threat of protectionism and vulnerabilities in emerging markets, is leaving marks on economic sentiment. At the same time, further employment gains and rising wages continue to underpin the resilience of the domestic economy and gradually rising inflation pressures. However, an ample degree of monetary accommodation remains necessary to safeguard favourable financing conditions and support the economic expansion, and thus to ensure that inflation remains on a sustained path towards levels that are below, but close to, 2% over the medium term. Significant monetary policy stimulus is being provided by our forward guidance on the key ECB interest rates, reinforced by the reinvestments of the sizeable stock of acquired assets and the new series of TLTROs.

Let me now explain our assessment in greater detail, starting with the economic analysis. Euro area real GDP rose by 0.2%, quarter on quarter, in the fourth quarter of 2018, following an increase of 0.1% in the third quarter. Incoming data continue to be weak, especially for the manufacturing sector, mainly on account of the slowdown in external demand, which has been compounded by some country and sector-specific factors. As the impact of these factors is turning out to be somewhat longer-lasting, the slower growth momentum is expected to extend into the current year. Looking ahead, the effect of these adverse factors is expected to unwind. The euro area expansion will continue to be supported by favourable financing conditions, further employment gains and rising wages, and the ongoing – albeit somewhat slower – expansion in global activity.

The risks surrounding the euro area growth outlook remain tilted to the downside, on account of the persistence of uncertainties related to geopolitical factors, the threat of protectionism and vulnerabilities in emerging markets.

According to Eurostat’s flash estimate, euro area annual HICP inflation was 1.4% in March 2019, after 1.5% in February, reflecting mainly a decline in food, services and non-energy industrial goods price inflation. On the basis of current futures prices for oil, headline inflation is likely to decline over the coming months. Measures of underlying inflation remain generally muted, but labour cost pressures have strengthened and broadened amid high levels of capacity utilisation and tightening labour markets. Looking ahead, underlying inflation is expected to increase over the medium term, supported by our monetary policy measures, the ongoing economic expansion and rising wage growth.


ECB | Joana Ferreira | joana.ferreira@tradingeconomics.com
4/10/2019 12:56:52 PM



Euro Area Money Last Previous Highest Lowest Unit
Interest Rate 0.00 0.00 4.75 0.00 percent [+]
Money Supply M1 8367356.00 8293377.00 8367356.00 444116.00 EUR Million [+]
Interbank Rate -0.35 -0.35 5.39 -0.39 percent [+]
Money Supply M2 11796749.00 11715780.00 11796749.00 1070365.00 EUR Million [+]
Money Supply M3 12438717.00 12370062.00 12438717.00 1097239.00 EUR Million [+]
Foreign Exchange Reserves 70.45 66.78 70.57 34.91 USD Billion [+]
Central Bank Balance Sheet 4669003.00 4674919.00 4674919.00 692641.00 EUR Million [+]
Loans to Private Sector 11177863.00 11157541.00 11177863.00 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 3.30 3.20 9.90 -0.40 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 April of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
0.00 0.00 4.75 0.00 1998 - 2019 percent Daily




Country Last Previous
Argentina 67.87 Apr/19
Turkey 24.00 Mar/19
Mexico 8.25 Mar/19
Russia 7.75 Mar/19
South Africa 6.75 Mar/19
Brazil 6.50 Mar/19
India 6.00 Apr/19
Indonesia 6.00 Mar/19
China 4.35 Mar/19
Saudi Arabia 3.00 Mar/19
United States 2.50 Mar/19
Singapore 2.24 Mar/19
Canada 1.75 Apr/19
South Korea 1.75 Apr/19
Australia 1.50 Apr/19
United Kingdom 0.75 Mar/19
Euro Area 0.00 Apr/19
France 0.00 Apr/19
Germany 0.00 Apr/19
Italy 0.00 Apr/19
Netherlands 0.00 Apr/19
Spain 0.00 Apr/19
Japan -0.10 Apr/19
Switzerland -0.75 Mar/19


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