The ECB keep rates on hold on July 25th with the main refinancing rate remaining at 0 and the deposit rate at -0.4 percent, but changed its forward guidance to say that it expects rates to remain “at their present or lower levels” at least through the first half of 2020. The bank has also pointed that is already making preparations for more quantitative easing as it "tasked the relevant Eurosystem Committees with examining options". Interest Rate in the Euro Area averaged 1.92 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 0.00 in 12 months time. In the long-term, the Euro Area Interest Rate is projected to trend around 0.25 percent in 2020, according to our econometric models.

Euro Area Interest Rate
Forecast Data Chart
Trading Economics members can view, download and compare data from nearly 200 countries, including more than 20 million economic indicators, exchange rates, government bond yields, stock indexes and commodity prices.

The Trading Economics Application Programming Interface (API) provides direct access to our data. It allows API clients to download millions of rows of historical data, to query our real-time economic calendar, subscribe to updates and receive quotes for currencies, commodities, stocks and bonds.

Calendar GMT Actual Previous Consensus TEForecast
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%
2019-06-06 11:45 AM ECB Interest Rate Decision 0% 0% 0% 0%
2019-07-25 11:45 AM ECB Interest Rate Decision 0% 0% 0% 0%
2019-09-12 11:45 AM ECB Interest Rate Decision 0%
2019-09-12 12:30 PM ECB Press Conference
2019-09-25 08:00 AM ECB Non-Monetary Policy Meeting

ECB Officials Consider Stimulus Package

ECB policymakers noted that the economic growth was likely to be weaker than initially thought this year and a package of stimulus measures would be more effective in combating the slowdown than a sequence of selective actions, minutes of the July meeting showed.

Excerpts from Account of the monetary policy meeting of the Governing Council of the European Central Bank, held in Frankfurt am Main on Wednesday and Thursday, 24-25 July 2019:

Members shared the assessment that information available since the early June Governing Council meeting indicated that, while further employment gains and increasing wages continued to underpin the resilience of the economy, softening global growth dynamics and weak international trade were still weighing on the euro area outlook. The prolonged presence of uncertainties, related to geopolitical factors, the rising threat of protectionism, and vulnerabilities in emerging markets, continued to dampen economic sentiment, notably in the manufacturing sector. It was noted that, while recent data were broadly in line with the baseline scenario and the forces underlying the baseline – such as solid wage growth and rising cost pressures – were still seen as intact, the uncertainty around the projected duration of the economic slowdown remained high, also affecting the medium-term inflation outlook. In this environment, inflationary pressures had remained muted and indicators of inflation expectations had declined.

Members expressed broad agreement with the monetary policy proposals made by Mr Lane in his introduction: first, to adjust the forward guidance on the key ECB interest rates by reintroducing an easing bias; and, second, to initiate preparatory work, including on ways to strengthen the Governing Council’s forward guidance on policy rates, mitigating measures, such as the design of a tiered system for reserve remuneration, and options for the size and composition of potential new net asset purchases. It was seen as important for the Governing Council to demonstrate its determination and capacity to act and to be prepared to ease the policy stance further by adjusting all of its instruments, as appropriate, to achieve its inflation aim. Looking ahead, more information would be available at the Governing Council’s monetary policy meeting in September, when new projections, incorporating the effects of the measures taken at the Governing Council’s June meeting, would be presented.

Members also broadly supported the proposal made by Mr Lane to task the relevant Eurosystem Committees with examining options for future policy measures. Some nuances were expressed about the design and the individual elements of a possible policy package, which was presented as a list of options. In particular, it was argued that the term premium on long-term euro area bonds had already been compressed for quite some time and that the risk of an unwarranted tightening of financial conditions was higher at the short end than at the long end of the yield curve. However, the view was expressed that the various options should be seen as a package, i.e. a combination of instruments with significant complementarities and synergies, since experience had shown that a policy package – such as the combination of rate cuts and asset purchases – was more effective than a sequence of selective actions. The point was made that the choice of instruments and the design of a possible package should reflect the relative effectiveness of different instruments in addressing future contingencies.

ECB | Joana Ferreira |
8/22/2019 12:03:45 PM

Euro Area Money Last Previous Highest Lowest Unit
Interest Rate 0.00 0.00 4.75 0.00 percent [+]
Money Supply M1 8606082.00 8551370.00 8606082.00 444116.00 EUR Million [+]
Interbank Rate -0.45 -0.45 5.39 -0.45 percent [+]
Money Supply M2 12055405.00 12010866.00 12055405.00 1070365.00 EUR Million [+]
Money Supply M3 12679647.00 12639106.00 12679647.00 1097239.00 EUR Million [+]
Foreign Exchange Reserves 73.27 70.31 73.27 34.91 USD Billion [+]
Central Bank Balance Sheet 4688182.00 4684376.00 4708899.00 692641.00 EUR Million [+]
Loans to Private Sector 11289475.00 11257373.00 11289475.00 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 3.30 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 August 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 74.98 Aug/19
Turkey 19.75 Jul/19
Mexico 8.00 Aug/19
Russia 7.25 Jul/19
South Africa 6.50 Aug/19
Brazil 6.00 Jul/19
Indonesia 5.50 Aug/19
India 5.40 Aug/19
China 4.25 Aug/19
Saudi Arabia 2.75 Aug/19
United States 2.25 Jul/19
Singapore 1.94 Jul/19
Canada 1.75 Aug/19
South Korea 1.50 Jul/19
Australia 1.00 Aug/19
United Kingdom 0.75 Aug/19
Euro Area 0.00 Jul/19
France 0.00 Jul/19
Germany 0.00 Jul/19
Italy 0.00 Jul/19
Netherlands 0.00 Jul/19
Spain 0.00 Jul/19
Japan -0.10 Aug/19
Switzerland -0.75 Aug/19