Euro Area Interest Rate

Last Release

Jul 18, 2024

Actual

4.25

Units In

4.25

Frequency

Daily

Next Release

Jul 24, 2025

Time to Release

21 Days 0 Hours

Highest	Lowest	Average	Date Range	Source
4.75 Oct 2000	0.5 Jul 2022	1.84 %	1998-2024	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

ECB officials delivered an eighth straight interest rate cut last month to safeguard inflation expectations and prevent unwarranted tightening in financial conditions, the minutes of the June 3–5 meeting showed. Policymakers cited “highly uncertain” global conditions, with persistent trade tensions likely to continue and possibly intensify. Amid this uncertainty and the risk of inflation shocks in either direction, officials emphasized the importance of retaining flexibility and avoiding firm forward guidance. A July pause has become increasingly likely, with most officials signaling a preference to wait for clearer data and developments in global trade talks before acting again. Inflation is now projected to fall below the ECB’s 2% target later this year and remain subdued for around 18 months, due to the strong euro, lower energy prices, and cheap imports from China. Markets are now expecting just one more rate cut by year-end, with a potential pivot toward tightening in late 2026.