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.

Graph and download economic data for ECB Deposit Facility Rate for Euro Area (ECBDFR) from 1999-01-01 to 2025-07-11 about overnight, Euro Area, deposits, Europe, and rate.

Bank Lending Rate In the Euro Area decreased to 3.81 percent in May from 3.92 percent in April of 2025. This dataset provides - Euro Area Bank Lending Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

From 2003 to 2025, the central banks of the United States, United Kingdom, and European Union exhibited remarkably similar interest rate patterns, reflecting shared global economic conditions. In the early 2000s, rates were initially low to stimulate growth, then increased as economies showed signs of overheating prior to 2008. The financial crisis that year prompted sharp rate cuts to near-zero levels, which persisted for an extended period to support economic recovery. The COVID-19 pandemic in 2020 led to further rate reductions to historic lows, aiming to mitigate economic fallout. However, surging inflation in 2022 triggered a dramatic policy shift, with the Federal Reserve, Bank of England, and European Central Bank significantly raising rates to curb price pressures. As inflation stabilized in late 2023 and early 2024, the ECB and Bank of England initiated rate cuts by mid-2024, and the Federal Reserve also implemented its first cut in three years, with forecasts suggesting a gradual decrease in all major interest rates between 2025 and 2026. Divergent approaches within the European Union While the ECB sets a benchmark rate for the Eurozone, individual EU countries have adopted diverse strategies to address their unique economic circumstances. For instance, Hungary set the highest rate in the EU at 13 percent in September 2023, gradually reducing it to 6.5 percent by October 2024. In contrast, Sweden implemented more aggressive cuts, lowering its rate to 2.25 percent by February 2025, the lowest among EU members. These variations highlight the complex economic landscape that European central banks must navigate, balancing inflation control with economic growth support. Global context and future outlook The interest rate changes in major economies have had far-reaching effects on global financial markets. Government bond yields, for example, reflect these policy shifts and investor sentiment. As of December 2024, the United States had the highest 10-year government bond yield among developed economies at 4.59 percent, while Switzerland had the lowest at 0.27 percent. These rates serve as important benchmarks for borrowing costs and economic expectations worldwide.

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.

Deposit Interest Rate In the Euro Area decreased to 2 percent in June from 2.25 percent in April of 2025. This dataset provides - Euro Area Deposit Interest Rate- actual values, historical data, forecast, chart, statistics, economic calendar and news.

Key information about European Union Long Term Interest Rate

• European Union Government Bond Yield: Monthly Average: Euro: 10 Years was reported at 2.99 % pa in Feb 2025, compared with 3.09 % pa in the previous month.
• EU Long Term Interest Rate data is updated monthly, available from Jan 1970 to Feb 2025.
• The data reached an all-time high of 15.44 % pa in Sep 1981 and a record low of -0.09 % pa in Dec 2020.
• Long Term Interest Rate is reported by reported by European Central Bank.

• In the latest reports, EU Short Term Interest Rate: Month End: EURIBOR: 3 Months was reported at -0.57 % pa in Nov 2021.
• The cash rate (Policy Rate: Month End: Main Refinancing Operations) was set at 2.90 % pa in Feb 2025.
• EU Exchange Rate against USD averaged 0.92 (USD/EUR) in Jun 2023.

Euro Short Term Rate In the Euro Area remained unchanged at 1.92 percent on Thursday July 10. This dataset includes a chart with historical data for Euro Area Euro Short Term Rate.

Lending Rate In the Euro Area decreased to 2.40 percent in June from 2.65 percent in April of 2025. This dataset provides - Euro Area Lending Rate- actual values, historical data, forecast, chart, statistics, economic calendar and news.

Graph and download economic data for ECB Marginal Lending Facility Rate for Euro Area (ECBMLFR) from 1999-01-01 to 2025-07-14 about margin, overnight, Euro Area, Europe, loans, and rate.

Policy interest rates in the U.S. and Europe are forecasted to decrease gradually between 2024 and 2027, following exceptional increases triggered by soaring inflation between 2021 and 2023. The U.S. federal funds rate stood at **** percent at the end of 2023, the European Central Bank deposit rate at **** percent, and the Swiss National Bank policy rate at **** percent. With inflationary pressures stabilizing, policy interest rates are forecast to decrease in each observed region. The U.S. federal funds rate is expected to decrease to *** percent, the ECB refi rate to **** percent, the Bank of England bank rate to **** percent, and the Swiss National Bank policy rate to **** percent by 2025. An interesting aspect to note is the impact of these interest rate changes on various economic factors such as growth, employment, and inflation. The impact of central bank policy rates The U.S. federal funds effective rate, crucial in determining the interest rate paid by depository institutions, experienced drastic changes in response to the COVID-19 pandemic. The subsequent slight changes in the effective rate reflected the efforts to stimulate the economy and manage economic factors such as inflation. Such fluctuations in the federal funds rate have had a significant impact on the overall economy. The European Central Bank's decision to cut its fixed interest rate in June 2024 for the first time since 2016 marked a significant shift in attitude towards economic conditions. The reasons behind the fluctuations in the ECB's interest rate reflect its mandate to ensure price stability and manage inflation, shedding light on the complex interplay between interest rates and economic factors. Inflation and real interest rates The relationship between inflation and interest rates is critical in understanding the actions of central banks. Central banks' efforts to manage inflation through interest rate adjustments reveal the intricate balance between economic growth and inflation. Additionally, the concept of real interest rates, adjusted for inflation, provides valuable insights into the impact of inflation on the economy.

In June 2024, the European Central Bank (ECB) reduced the interest rate on its marginal lending facility by 0.25 percentage points, marking the first cut since 2016. Three months later, the ECB implemented another cut, setting the rate at 3.9 percent. It was followed by two further cuts at the end of 2024 and three more in early 2025, the latter one setting the rate at 2.65 percent. The marginal lending rate had previously been adjusted on March 16, 2016, when it was lowered from 0.3 percent to 0.25 percent, remaining unchanged until July 2022, when it was raised to 0.75 percent. After September 2022, the rate saw regular increases, reaching 4.75 percent by April 2024.

In June 2024, the European Central Bank (ECB) lowered its deposit facility interest rate for the first time in over two years, marking a shift in its monetary policy stance. This move was followed by a gradual adjustment, with the rate reaching 3.25 percent six months later. By December 2024, the ECB implemented an additional rate cut, bringing the rate down to three percent. In early 2025, the ECB implemented three further cuts, setting the rate at 2.25 percent in April 2025. These reductions came after a prolonged period of steady rate increases, signaling a measured response to evolving economic conditions and a potential recalibration of its approach to support growth and stability.

Key information about Germany Long Term Interest Rate

• Germany Long Term Interest Rate: Month Avg: Germany: ECB Harmonised was reported at 2.41 % pa in Feb 2025, compared with 2.48 % pa in the previous month.
• Germany Long Term Interest Rate data is updated monthly, available from Jan 1990 to Feb 2025.
• The data reached an all-time high of 9.09 % pa in Oct 1990 and a record low of -0.65 % pa in Aug 2019.
• Long Term Interest Rate is reported by reported by CEIC Data.

• In the latest reports, Germany Short Term Interest Rate: Month End: EURIBOR: 3 Months was reported at -0.57 % pa in Nov 2021.
• The cash rate (Policy Rate: Month End: Main Refinancing Operations) was set at 2.90 % pa in Feb 2025.
• Germany Exchange Rate against USD averaged 0.92 (USD/EUR) in Jun 2023.

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.

Since its introduction in October 2019, the Euro Short-Term Rate (€STR) has remained constant at between -0.51 and -0.59 percent until the second half 2022. Since then, it increased, peaking at 3.9 between the end of 2023 and the beginning of 2024. As of January 2025, the rate stood at 2.92 percent. The €STR is an interest rate benchmark designed to replace the Euro OverNight Index Average (EOIA), adopting a different calculation methodology that returns significantly lower rates. It is intended that the EOIA will be discontinued from January 3, 2022. How is the Euro Short-Term Rate calculated? The €STR uses transaction data included in daily reporting on monetary exchanges from the 52 largest eurozone banks to calculate the average interests rate attached to loans throughout a business day. Only unsecured loans are included, as the rate on secured loans would be affected by the type of underlying collateral. Several key respects distinguish the €STR from alternative benchmarks like the EOIA, and the London Intrabank Offered Rate (LIBOR). First, the €STR is based on transaction data alone, whereas the LIBOR asking major banks directly what rate they would charge other banks for short terms loans. The second main difference is that, by considering money market transactions rather than only intrabank lending (like the EOIA and LIBOR), the €STR incorporates the role of other major actors like money market funds, insurance companies, and other financial corporations. Difference between €STR and EURIBOR The Euro Interbank Offered Rate (EURIBOR) is the other main reference interest rate governing eurozone lending. The EURIBOR differs from €STR though as it is based on a survey of the interest rates a panel of major banks would offer other major banks for interbank term deposits. There are therefore different reference rates published for different maturities, for example the EURIBOR one month rate, the EURIBOR six month rate, and the EURIBOR 12 month rate. In contrast, the €STR is intended to track the cost of overnight borrowing.

Key information about European Union Policy Rate

• European Union cash rate (Policy Rate: Month End: Main Refinancing Operations) was set at 2.90 % pa in Feb 2025, compared with 3.15 % pa in the previous Jan 2025.
• EU Policy Rate averaged 1.25 % pa and is updated monthly, available from Jan 1999 to Feb 2025.
• The data reached an all-time high of 4.75 % pa in Apr 2001 and a record low of 0.00 % pa in Jun 2022.

• In the latest reports, EU Short Term Interest Rate: Month End: EURIBOR: 3 Months was reported at -0.57 % pa in Nov 2021.
• Its Long Term Interest Rate (Government Bond Yield: Monthly Average: Euro: 10 Years) was reported at 3.09 % pa in Jan 2025.
• EU Exchange Rate against USD averaged 0.92 (USD/EUR) in Jun 2023.
• Its Real Effective Exchange Rate was 90.23 in Jan 2025.

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.

Ireland ECB Interest Rate: Deposit Facility data was reported at 2.250 % pa in Apr 2025. This records a decrease from the previous number of 2.500 % pa for Mar 2025. Ireland ECB Interest Rate: Deposit Facility data is updated monthly, averaging 0.625 % pa from Jan 1999 (Median) to Apr 2025, with 316 observations. The data reached an all-time high of 4.000 % pa in May 2024 and a record low of -0.500 % pa in Jun 2022. Ireland ECB Interest Rate: Deposit Facility data remains active status in CEIC and is reported by European Central Bank. The data is categorized under Global Database’s Ireland – Table IE.M001: Key Interest Rates: European Central Bank.

Key information about France Long Term Interest Rate

• France Long Term Interest Rate: Month Avg: France: ECB Harmonised was reported at 3.15 % pa in Feb 2025, compared with 3.32 % pa in the previous month.
• France Long Term Interest Rate data is updated monthly, available from Jan 1986 to Feb 2025.
• The data reached an all-time high of 10.70 % pa in Oct 1987 and a record low of -0.34 % pa in Dec 2020.
• Long Term Interest Rate is reported by reported by CEIC Data.

• In the latest reports, France Short Term Interest Rate: Month End: EURIBOR: 3 Months was reported at -0.57 % pa in Nov 2021.
• The cash rate (Policy Rate: Month End: Main Refinancing Operations) was set at 2.90 % pa in Feb 2025.
• France Exchange Rate against USD averaged 0.92 (USD/EUR) in Jun 2023.