The European Central Bank raised interest rates by 25 basis points on Thursday, a ninth consecutive rate hike, saying inflation is still expected to remain too high for too long despite the recent slowdown. This brought the rate on main refinancing operations to 4.25%, the highest since October 2008, and the rate on the deposit facility to an over 22-year high of 3.75%. The ECB has also committed to following a "data-dependent approach" to future rate decisions and said that rates would be set at sufficiently restrictive levels for as long as necessary to bring inflation back to its 2% target. Since the commencement of the central bank's tightening cycle in July 2022, ECB officials have implemented an unprecedented 425 basis point increase in rates, marking the fastest tightening pace in its history. source: European Central Bank

Interest Rate in Euro Area averaged 1.74 percent from 1998 until 2023, 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 August of 2023.

Interest Rate in Euro Area is expected to be 4.50 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 3.75 percent in 2024 and 2.75 percent in 2025, according to our econometric models.

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Euro Area Interest Rate



Calendar GMT Reference Actual Previous Consensus TEForecast
2023-05-04 12:15 PM ECB Interest Rate Decision 3.75% 3.5% 3.75% 3.75%
2023-06-15 12:15 PM ECB Interest Rate Decision 4% 3.75% 4% 4.0%
2023-07-27 12:15 PM ECB Interest Rate Decision 4.25% 4% 4.25% 4.25%
2023-08-31 11:30 AM ECB Monetary Policy Meeting Accounts
2023-09-14 12:15 PM ECB Interest Rate Decision 4.25% 4.5%
2023-10-26 12:15 PM ECB Interest Rate Decision


Related Last Previous Unit Reference
Interest Rate 4.25 4.00 percent Jul 2023
Money Supply M1 10620833.00 10714341.00 EUR Million Jul 2023
Money Supply M2 15063163.00 15119923.00 EUR Million Jul 2023
Money Supply M3 15956504.00 16022186.00 EUR Million Jul 2023
Central Bank Balance Sheet 7153069.00 7166516.00 EUR Million Aug 2023
Foreign Exchange Reserves 83.22 81.79 USD Billion Jul 2023
Loans to Private Sector 5147193.00 5144116.00 EUR Million Jul 2023
Lending Rate 4.50 4.50 percent Aug 2023
Loan Growth 1.30 1.70 percent Jul 2023
Deposit Interest Rate 3.75 3.50 percent Jul 2023

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 4.00 4.75 0.00 1998 - 2023 percent Daily

News Stream
ECB Hikes Rates for 9th Consecutive Time
The European Central Bank raised interest rates by 25 basis points on Thursday, a ninth consecutive rate hike, saying inflation is still expected to remain too high for too long despite the recent slowdown. This brought the rate on main refinancing operations to 4.25%, the highest since October 2008, and the rate on the deposit facility to an over 22-year high of 3.75%. The ECB has also committed to following a "data-dependent approach" to future rate decisions and said that rates would be set at sufficiently restrictive levels for as long as necessary to bring inflation back to its 2% target. Since the commencement of the central bank's tightening cycle in July 2022, ECB officials have implemented an unprecedented 425 basis point increase in rates, marking the fastest tightening pace in its history.
2023-07-27
ECB Poised to Deliver Another 25bps Hike
The European Central Bank will likely deliver another 25 bps interest rate hike on Thursday, raising the rate on main refinancing operations to 4.25%, the highest since October 2008, and the rate on the deposit facility to an over 22-year high of 3.75%. This will mark the ninth consecutive rate hike since the commencement of the ECB's tightening cycle in July 2022. The upcoming policy statement and President Lagarde's press conference will be closely scrutinized by investors for further insights into the ECB's future trajectory, as doubts have arisen among several ECB members regarding the necessity of a rate hike in September. On one hand, the core inflation rate hit 5.5% in June, not far from an all-time high of 5.7% in March. On the other hand, the economic outlook remains gloomy and recent data showed the credit demand for both households and companies cooled down sharply.
2023-07-27
ECB Raises Concerns Over Meeting Inflation Target
European Central Bank officials generally agreed that the central bank would consider raising interest rates beyond July due to concerns about prolonged high inflation, which raised doubts about achieving the inflation target within a reasonable timeframe, the accounts of the ECB's June policy meeting showed. The majority of members supported the 25 basis point rate increase implemented in June. Additionally, there was initial preference expressed for a 50 basis point increase in key ECB interest rates, given the risk of persistent high inflation. The ECB has also emphasized that future decisions would be data-dependent and reiterated it would adopt a meeting-by-meeting approach in an uncertain environment, particularly considering that interest rates were approaching a potential peak level.
2023-07-13