The European Central Bank kept interest rates unchanged at record-high levels during its first meeting of 2024 and pledged to maintain them at sufficiently restrictive levels for as long as necessary to bring inflation back to its 2% target in a timely manner, despite concerns about a looming recession and a gradual easing in inflationary pressures. The main refinancing operations rate remained at a 22-year high of 4.5% for a third consecutive time, while the deposit facility rate held steady at an all-time record of 4%. During the central bank's press conference, President Lagarde told reporters that officials unanimously concurred that it was premature to engage in discussions regarding interest rate cuts. The ECB concluded its rapid rate-hiking cycle in September, but it has sustained a somewhat hawkish stance due to persistent underlying price pressures within the Eurozone and uncertainties stemming from geopolitical tensions, including the Red Sea blockade. source: European Central Bank
The benchmark interest rate In the Euro Area was last recorded at 4.50 percent. Interest Rate in Euro Area averaged 1.78 percent from 1998 until 2024, 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 February of 2024.
The benchmark interest rate In the Euro Area was last recorded at 4.50 percent. 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 2.25 percent in 2025, according to our econometric models.
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 | ||
|---|---|---|---|---|---|---|---|---|
| 4.50 | 4.50 | 4.75 | 0.00 | 1998 - 2024 | percent | Daily |
News Stream
ECB Holds Rates as Expected, Maintains Hawkish Stance
The European Central Bank kept interest rates unchanged at record-high levels during its first meeting of 2024 and pledged to maintain them at sufficiently restrictive levels for as long as necessary to bring inflation back to its 2% target in a timely manner, despite concerns about a looming recession and a gradual easing in inflationary pressures. The main refinancing operations rate remained at a 22-year high of 4.5% for a third consecutive time, while the deposit facility rate held steady at an all-time record of 4%. During the central bank's press conference, President Lagarde told reporters that officials unanimously concurred that it was premature to engage in discussions regarding interest rate cuts. The ECB concluded its rapid rate-hiking cycle in September, but it has sustained a somewhat hawkish stance due to persistent underlying price pressures within the Eurozone and uncertainties stemming from geopolitical tensions, including the Red Sea blockade.
2024-01-25
ECB to Hold Rates, Resist Early Rate Cuts Talks
The European Central Bank is likely to keep interest rates unchanged at record-high levels on Thursday, despite concerns about a looming recession and a rapid slowdown in inflation. Investors will be looking to ECB President Christine Lagarde's press conference for any clues about the timing of interest rate cuts this year. Although the ECB concluded its rapid rate-hiking cycle in September, it has sustained a somewhat hawkish stance due to persistent underlying price pressures within the Eurozone and uncertainties stemming from geopolitical tensions, including the Red Sea blockade. Still, investors believe the ECB will be forced to slash borrowing costs sooner rather than later, with the first move in April or June, resulting in a total of 130 basis points of rate cuts this year.
2024-01-25
ECB Advocates Prolonged Restrictive Stance: Minutes
ECB policymakers agreed that inflation would be brought back towards the 2% target in 2025, but there was a need for the maintenance of a restrictive stance for some time due to differing views on whether the target would be reached in a timely manner, the minutes from the most recent ECB meeting showed. Officials also concurred that it was still too early to be confident that the task of combating inflation had been accomplished, as they cautioned that price pressures would likely pick up in the near term, and there were ongoing uncertainties regarding wages and underlying inflation dynamics. Investors have recently tempered their expectations for rate cuts in the first half of 2024, in response to hawkish remarks from ECB officials and robust December inflation figures.
2024-01-18
