The benchmark interest rate In the Euro Area was last recorded at 2.15 percent. This dataset provides - Euro Area Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

In June 2024, the European Central Bank (ECB) began reducing its fixed interest rate for the first time since 2016, implementing a series of cuts. The rate decreased from 4.5 percent to 3.15 percent by year-end: a 0.25 percentage point cut in June, followed by additional reductions in September, October, and December. The central bank implemented other cuts in early 2025, setting the rate at 2.4 percent in April 2025. This marked a significant shift from the previous rate hike cycle, which began in July 2022 when the ECB raised rates to 0.5 percent and subsequently increased them almost monthly, reaching 4.5 percent by December 2023 - the highest level since the 2007-2008 global financial crisis. How does this ensure liquidity? Banks typically hold only a fraction of their capital in cash, measured by metrics like the Tier 1 capital ratio. Since this ratio is low, banks prefer to allocate most of their capital to revenue-generating loans. When their cash reserves fall too low, banks borrow from the ECB to cover short-term liquidity needs. On the other hand, commercial banks can also deposit excess funds with the ECB at a lower interest rate. Reasons for fluctuations
The ECB’s primary mandate is to maintain price stability. The Euro area inflation rate is, in theory, the key indicator guiding the ECB's actions. When the fixed interest rate is lower, commercial banks are more likely to borrow from the ECB, increasing the money supply and, in turn, driving inflation higher. When inflation rises, the ECB increases the fixed interest rate, which slows borrowing and helps to reduce inflation.

The benchmark interest rate in Sweden was last recorded at 2 percent. This dataset provides the latest reported value for - Sweden Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

In May 2025, global inflation rates and central bank interest rates showed significant variation across major economies. Most economies initiated interest rate cuts from mid-2024 due to declining inflationary pressures. The U.S., UK, and EU central banks followed a consistent pattern of regular rate reductions throughout late 2024. In early 2025, Russia maintained the highest interest rate at 20 percent, while Japan retained the lowest at 0.5 percent. Varied inflation rates across major economies The inflation landscape varies considerably among major economies. China had the lowest inflation rate at -0.1 percent in May 2025. In contrast, Russia maintained a high inflation rate of 9.9 percent. These figures align with broader trends observed in early 2025, where China had the lowest inflation rate among major developed and emerging economies, while Russia's rate remained the highest. Central bank responses and economic indicators Central banks globally implemented aggressive rate hikes throughout 2022-23 to combat inflation. The European Central Bank exemplified this trend, raising rates from 0 percent in January 2022 to 4.5 percent by September 2023. A coordinated shift among major central banks began in mid-2024, with the ECB, Bank of England, and Federal Reserve initiating rate cuts, with forecasts suggesting further cuts through 2025 and 2026.

The U.S. federal funds rate peaked in 2023 at its highest level since the 2007-08 financial crisis, reaching 5.33 percent by December 2023. A significant shift in monetary policy occurred in the second half of 2024, with the Federal Reserve implementing regular rate cuts. By December 2024, the rate had declined to 4.48 percent. What is a central bank rate? The federal funds rate determines the cost of overnight borrowing between banks, allowing them to maintain necessary cash reserves and ensure financial system liquidity. When this rate rises, banks become more inclined to hold rather than lend money, reducing the money supply. While this decreased lending slows economic activity, it helps control inflation by limiting the circulation of money in the economy. Historic perspective The federal funds rate historically follows cyclical patterns, falling during recessions and gradually rising during economic recoveries. Some central banks, notably the European Central Bank, went beyond traditional monetary policy by implementing both aggressive asset purchases and negative interest rates.

August 2024 marked a significant shift in the UK's monetary policy, as it saw the first reduction in the official bank base interest rate since August 2023. This change came after a period of consistent rate hikes that began in late 2021. In a bid to minimize the economic effects of the COVID-19 pandemic, the Bank of England cut the official bank base rate in March 2020 to a record low of *** percent. This historic low came just one week after the Bank of England cut rates from **** percent to **** percent in a bid to prevent mass job cuts in the United Kingdom. It remained at *** percent until December 2021 and was increased to one percent in May 2022 and to **** percent in October 2022. After that, the bank rate increased almost on a monthly basis, reaching **** percent in August 2023. It wasn't until August 2024 that the first rate decrease since the previous year occurred, signaling a potential shift in monetary policy. Why do central banks adjust interest rates? Central banks, including the Bank of England, adjust interest rates to manage economic stability and control inflation. Their strategies involve a delicate balance between two main approaches. When central banks raise interest rates, their goal is to cool down an overheated economy. Higher rates curb excessive spending and borrowing, which helps to prevent runaway inflation. This approach is typically used when the economy is growing too quickly or when inflation is rising above desired levels. Conversely, when central banks lower interest rates, they aim to encourage borrowing and investment. This strategy is employed to stimulate economic growth during periods of slowdown or recession. Lower rates make it cheaper for businesses and individuals to borrow money, which can lead to increased spending and investment. This dual approach allows central banks to maintain a balance between promoting growth and controlling inflation, ensuring long-term economic stability. Additionally, adjusting interest rates can influence currency values, impacting international trade and investment flows, further underscoring their critical role in a nation's economic health. Recent interest rate trends Between 2021 and 2024, most advanced and emerging economies experienced a period of regular interest rate hikes. This trend was driven by several factors, including persistent supply chain disruptions, high energy prices, and robust demand pressures. These elements combined to create significant inflationary trends, prompting central banks to raise rates in an effort to temper spending and borrowing. However, in 2024, a shift began to occur in global monetary policy. The European Central Bank (ECB) was among the first major central banks to reverse this trend by cutting interest rates. This move signaled a change in approach aimed at addressing growing economic slowdowns and supporting growth.

The benchmark interest rate in Germany was last recorded at 4.50 percent. This dataset provides - Germany Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

The German Internet Panel (GIP) is an infrastructure project. The GIP serves to collect data about individual attitudes and preferences which are relevant for political and economic decision-making processes.

Experimental variations were used in the instruments. The questionnaire contains numerous randomisations as well as a cross-questionnaire experiment.

Topics: Party preference (Sunday question); assessment of the importance of selected policy fields for the federal government (labour market, foreign policy, education and research, citizen participation, energy supply, food and agriculture, European unification, family, health care system, gender equality, internal security, personal rights, pension system, national debt, tax system, environment and climate protection, consumer protection, transport, defence, currency, economy, immigration and integration); currently most important policy areas for the respondent; satisfaction with the performance of the federal government (scalometer); satisfaction with the performance of the parties CDU/CSU, SPD, Bündnis 90/Die Grünen, Die Linke (scalometer); probability of an external event: Effects of the Ukraine crisis on the availability and price of Russian gas in Germany; Federal government should draw consequences from the Ukraine crisis and find alternatives to the purchase of Russian gas; assessment of political decisions of the Federal government on the introduction of a rent brake and a car toll, on the expansion of the digital infrastructure as well as on the re-regulation of prostitution; respective responsibility for the fact that corresponding laws have not yet been passed; expected change in unemployment due to the introduction of the minimum wage respectively in Eastern Germany, Western Germany and in Germany as a whole; opinion on the introduction of a statutory minimum wage; assessment of an alternative proposal to the minimum wage (state pays the difference between the real hourly wage and a gross wage of 8.50 euros); opinion on lowering the minimum wage in regions with high unemployment instead of the same minimum wage throughout Germany; self-assessment of patience and willingness to take risks (scalometer); preferred date for the debt brake (from 2015, from 2020, from 2025, after 2030 or not at all); assessment of the debt brake; assessment of the probability that one´s own federal state will manage without new debt from 2020; one´s own federal state should comply with the debt brake if not all 16 federal states manage without new debt from 2020; net household income resp. personal income; own willingness to pay an additional tax amount so that the own federal state can get along without new debts from 2020 onwards and the amount of this contribution (answer scale depending on household income and personal income); debts of cities and municipalities: Willingness to pay additional fees so that the municipality of residence can manage without new debts and the amount of this contribution (classified); willingness to agree to the merger of one´s own federal state with a neighbouring federal state; opinion on self-determination of the tax level by the federal states; opinion on the financing of infrastructure costs in poor regions via a common EU budget; opinion on EU loans within the framework of the euro bailout fund for heavily indebted member states; opinion on the fiscal equalisation system between the federal states; whether one´s own federal state belongs to the donor states or the recipient states; opinion on a law on the formation of reserves by the federal states for the pensions of state civil servants; demand for state measures to reduce income disparities; acceptance of tax evasion; inflation in Germany: Assessment of the price development for food and clothing in general and measured against the expectations of the European Central Bank (ECB) (inflation expectations); expected annual inflation rate in five and in ten years (medium-term and long-term inflation); assessment of the European Central Bank with regard to price stability in the Eurozone; preferred combination of the amount of monthly expenditure and the amount of a loan repayment; reception frequency of news in general and of news on the topic of economy.

Demography: sex; citizenship; year of birth (categorised); highest school-leaving qualification; highest professional qualification; marital status; household size; employment status; private internet use; federal state.

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