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

The ECB held its benchmark refinancing rate at 0 percent on March 8th as expected, and reaffirmed that the net asset purchases are intended to run at a monthly pace of €30 billion until the end of September, or beyond, if necessary. The deposit facility rate and the marginal lending facility rate were kept at -0.4 percent and 0.25 percent, respectively. Still, the bank dropped its commitment to increase the size of its QE program by removing the easing bias from its monetary policy message. Interest Rate in the Euro Area averaged 2.03 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 Needs Further Evidence Inflation is on Sustainable Path

Monetary policy will remain patient, persistent and prudent as the ECB still needs to see further evidence that inflation dynamics are moving in the right direction, Mario Draghi said in a speech in Frankfurt. Still, policymakers are more confident than in the past that inflation will converge towards the bank's target of below but close to 2 percent over the medium term, he added.

Excerpts from the speech by Mario Draghi, President of the ECB, The ECB and Its Watchers XIX Conference organised by the Institute for Monetary and Financial Stability, Frankfurt, 14 March 2018:

In this environment, policymakers have to be more cautious than in the past about the assumptions that underpin our forecasts – and simple policy rules based around estimates of the output gap are no longer a useful guide for our actions. The severity of the crisis means that we cannot rely exclusively on traditional historical relationships to determine how quickly real developments will be passed through into nominal ones.

The key issues we need to examine are wage dynamics, their pass-through to prices, and the possible risks to the inflation outlook.

Wage growth has been trending upwards for the euro area as a whole, rising by 0.5 percentage points from the trough in mid-2016. But consistent with the weakening of the relationship between slack and inflation, the adjustment of wages during the recovery has so far been atypically slow.

So this is an issue we will have to monitor closely, especially in an environment where one has to be cautious about extrapolating past relationships into the future. To build confidence that inflation dynamics are on track, we will need to see the actual data improving over time, which means stronger evidence of both strengthening wage growth and wage growth translating into ULC growth.

Moreover, there are still two risks to the outlook that could – if they intensify – conspire to reduce our confidence in the inflation path.

The first risk relates to the global environment, and in particular the possible spillovers of the new trade measures announced by the US administration.

Our own internal estimates suggest that the first-round effect on the euro area of the proposed measures is likely to be small, even if there is symmetric retaliation from US trading partners. But there are potential second-round effects that could have much more serious consequences. These include the risk of retaliation across other goods and an escalation of trade tensions; and the potential for negative confidence effects, which would weigh on business investment in particular.

The second risk relates to developments in foreign exchange markets and wider financial markets.

The euro has appreciated since the beginning of last year, and according to our analysis, this has recently been driven more by exogenous factors – that is, purchases of euros that cannot be explained solely by the economic expansion. This might weigh on inflation down the line as it does not fully arise from stronger euro area fundamentals. So this is a development we need to monitor closely.

ECB | Joana Ferreira |
3/14/2018 9:55:09 AM

Calendar GMT Actual Previous Consensus TEForecast
2017-12-14 12:45 PM ECB Interest Rate Decision 0% 0% 0% 0%
2018-01-25 12:45 PM ECB Interest Rate Decision 0% 0% 0% 0.0%
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
2018-04-26 12:30 PM ECB Press Conference
2018-06-14 11:45 AM ECB Interest Rate Decision

Euro Area Money Last Previous Highest Lowest Unit
Interest Rate 0.00 0.00 4.75 0.00 percent [+]
Interbank Rate -0.38 -0.38 5.39 -0.39 percent [+]
Money Supply M1 7797624.00 7748540.00 7797624.00 444118.00 EUR Million [+]
Money Supply M2 11260807.00 11202811.00 11260807.00 1070365.00 EUR Million [+]
Money Supply M3 11905125.00 11863760.00 11905125.00 1097238.00 EUR Million [+]
Foreign Exchange Reserves 62.94 60.97 70.57 34.91 USD Billion [+]
Central Bank Balance Sheet 4493672.00 4491151.00 4493672.00 692641.00 EUR Million [+]
Loans to Private Sector 10930881.00 10872894.00 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 March 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 8.00 Mar/18
Mexico 7.50 Feb/18
Russia 7.50 Feb/18
Brazil 6.75 Feb/18
India 6.00 Feb/18
China 4.35 Feb/18
Indonesia 4.25 Feb/18
Australia 1.50 Mar/18
South Korea 1.50 Feb/18
United States 1.50 Feb/18
Canada 1.25 Mar/18
United Kingdom 0.50 Feb/18
Euro Area 0.00 Mar/18
France 0.00 Mar/18
Germany 0.00 Mar/18
Italy 0.00 Mar/18
Netherlands 0.00 Mar/18
Spain 0.00 Mar/18
Japan -0.10 Mar/18
Switzerland -0.75 Mar/18