Euro Area Interest Rate

Last Release

May 04, 2023

Actual

3.75

Units In

3.5

Frequency

Daily

Next Release

Jun 15, 2023

Time to Release

1 Months 10 Days 5 Hours

Highest	Lowest	Average	Date Range	Source
4.75 Oct 2000	0.5 Jul 2022	1.72 %	1998-2023	European Central Bank

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. .

Latest Updates

The European Central Bank raised its key interest rates by 25 bps during its May meeting, signaling a slowing pace of policy tightening. Nevertheless, borrowing costs have now reached their highest level since July 2008, following seven consecutive rate increases as the ECB strives to combat high inflation despite ongoing recession risks. The central bank also announced plans to discontinue the reinvestment of cash from maturing bonds purchased under the €3.2 trillion APP from July. Latest economic data revealed that the inflation rate in the Euro Area rose to 7% in April, with the core rate remaining close to March's all-time high at 5.6%. The interest rate on the main refinancing operations, as well as the interest rates on the marginal lending facility and the deposit facility, increased to 3.75%, 4.00%, and 3.25%, respectively. Meanwhile, President Lagarde told a news conference that the ECB had more ground to cover and it was not pausing the rate-lifting cycle anytime soon.