Euro Area Interest Rate

Last Release

Jul 18, 2024

Actual

4.25

Units In

4.25

Frequency

Daily

Next Release

Sep 12, 2024

Time to Release

1 Months 24 Days 8 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

The ECB decided to keep interest rates unchanged in July 2024, as expected, as current data supports their previous inflation outlook. The main refinancing operations rate remained at 4.25%, the deposit facility rate at 3.75%, and the marginal lending rate at 4.5%. Some inflation indicators rose in May due to temporary factors, but most stabilized or fell in June. High wage growth's inflationary impact has been mitigated by profits, and monetary policy remains restrictive. Despite this, domestic price pressures and services inflation are still high, with overall inflation expected to stay above target into next year. The Council aims to return inflation to 2% and will maintain restrictive policy rates as needed. Decisions on rates will depend on ongoing economic data, underlying inflation trends, and the effectiveness of monetary policy. The Council is flexible and will adjust rates based on evolving data, without committing to a fixed path.