The benchmark interest rate In the Euro Area was last recorded at 2.65 percent. This dataset provides - Euro Area Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

European Union central banks navigated a complex economic landscape between 2022 and 2025, with interest rates initially rising across member states. However, a pivotal shift occurred in late 2023 as most countries began lowering their rates, reflecting the delicate balance between controlling inflation and supporting economic growth. In the Euro area, the European Central Bank (ECB) led this trend by cutting interest rates from 4.5 percent to 3.15 percent in 2024, implementing four strategic rate reductions throughout the year. This approach was nearly universally adopted, with Poland being the sole EU country not reducing its rates during this period. Global context and policy shifts The interest rate changes in the EU mirror similar movements in other major economies. The United States, United Kingdom, and European Union central banks followed remarkably similar patterns from 2003 to 2024, responding to shared global economic conditions. After maintaining near-zero rates following the 2008 financial crisis and the COVID-19 pandemic, these institutions sharply raised rates in 2022 to combat surging inflation. By mid-2024, the European Central Bank and Bank of England initiated rate cuts, with the Federal Reserve following suit. Varied approaches within the EU Despite the overall trend, individual EU countries have adopted diverse strategies. Hungary, for instance, set the highest rate in the EU at 13 percent in September 2023, gradually reducing it to 6.5 percent by September 2024. In contrast, Sweden implemented the most aggressive cuts, lowering its rate to 2.25 percent by February 2025, the lowest among EU members. These divergent approaches highlight the unique economic challenges faced by each country and the flexibility required in monetary policy to address specific national circumstances.

This dataset provides values for INTEREST RATE reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.

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 another cut in early 2025, setting the rate at 2.9 percent. 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.

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.

Graph and download economic data for ECB Deposit Facility Rate for Euro Area (ECBDFR) from 1999-01-01 to 2025-03-26 about overnight, Euro Area, deposits, Europe, and rate.

According to the European Central Bank's survey of professional forecasters, the interest rate on the ECB's main refinancing operations is expected to decrease from 2.9 percent in January 2025 to 1.9 percent in 2026.

Finland ECB Interest Rate: Marginal Lending Facility data was reported at 3.150 % pa in Feb 2025. This records a decrease from the previous number of 3.400 % pa for Jan 2025. Finland ECB Interest Rate: Marginal Lending Facility data is updated monthly, averaging 2.000 % pa from Jan 1999 (Median) to Feb 2025, with 314 observations. The data reached an all-time high of 5.750 % pa in Apr 2001 and a record low of 0.250 % pa in Jun 2022. Finland ECB Interest Rate: Marginal Lending Facility data remains active status in CEIC and is reported by European Central Bank. The data is categorized under Global Database’s Finland – Table FI.M001: Key Interest Rates: European Central Bank.

Deposit Interest Rate In the Euro Area decreased to 2.50 percent in March from 2.75 percent in February of 2025. This dataset provides - Euro Area Deposit Interest Rate- actual values, historical data, forecast, chart, statistics, economic calendar and news.

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 a further cut, setting the rate at 2.75 percent. 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.

Graph and download economic data for Interest Rates: Immediate Rates (< 24 Hours): Call Money/Interbank Rate: Total for Euro Area (19 Countries) (IRSTCI01EZM156N) from Jan 1994 to Feb 2025 about interbank, overnight, Euro Area, Europe, interest rate, interest, and rate.

Belgium ECB Interest Rate: Marginal Lending Facility data was reported at 3.150 % pa in Feb 2025. This records a decrease from the previous number of 3.400 % pa for Jan 2025. Belgium ECB Interest Rate: Marginal Lending Facility data is updated monthly, averaging 2.000 % pa from Jan 1999 (Median) to Feb 2025, with 314 observations. The data reached an all-time high of 5.750 % pa in Apr 2001 and a record low of 0.250 % pa in Jun 2022. Belgium ECB Interest Rate: Marginal Lending Facility data remains active status in CEIC and is reported by European Central Bank. The data is categorized under Global Database’s Belgium – Table BE.M001: Key Interest Rates: European Central Bank.

Graph and download economic data for Interest Rates: Long-Term Government Bond Yields: 10-Year: Main (Including Benchmark) for Euro Area (19 Countries) from Jan 1970 to Feb 2025 about long-term, Euro Area, 10-year, Europe, bonds, yield, government, interest rate, interest, 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 5.38 percent at the end of 2023, the European Central Bank deposit rate at four percent, and the Swiss National Bank policy rate at 1.75 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 3.5 percent, the ECB refi rate to 2.65 percent, the Bank of England bank rate to 3.33 percent, and the Swiss National Bank policy rate to 0.75 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.

Key information about European Union Short Term Interest Rate

• European Union Short Term Interest Rate: Month End: EURIBOR: 3 Months was reported at -0.57 % pa in Nov 2021, compared with -0.55 % pa in the previous month.
• EU Short Term Interest Rate data is updated monthly, available from Dec 1998 to Nov 2021.
• The data reached an all-time high of 5.28 % pa in Sep 2008 and a record low of -0.57 % pa in Nov 2021.
• Short Term Interest Rate is reported by reported by European Money Markets Institute.

• In the latest reports, EU Government Bond Yield: Monthly Average: Euro: 10 Years was reported at 2.90 % pa in Jan 2024.
• The cash rate (Policy Rate: Month End: Main Refinancing Operations) was set at 4.50 % pa in Jan 2024.
• EU Exchange Rate against USD averaged 0.92 (USD/EUR) in Jun 2023.

Finland ECB Interest Rate: Deposit Facility data was reported at 2.750 % pa in Feb 2025. This records a decrease from the previous number of 3.000 % pa for Jan 2025. Finland ECB Interest Rate: Deposit Facility data is updated monthly, averaging 0.500 % pa from Jan 1999 (Median) to Feb 2025, with 314 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. Finland 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 Finland – Table FI.M001: Key Interest Rates: European Central Bank.

European Union Key Interest Rate: Month End: Marginal Lending Facility data was reported at 3.150 % pa in Feb 2025. This records a decrease from the previous number of 3.400 % pa for Jan 2025. European Union Key Interest Rate: Month End: Marginal Lending Facility data is updated monthly, averaging 2.000 % pa from Jan 1999 (Median) to Feb 2025, with 314 observations. The data reached an all-time high of 5.750 % pa in Apr 2001 and a record low of 0.250 % pa in Jun 2022. European Union Key Interest Rate: Month End: Marginal Lending Facility data remains active status in CEIC and is reported by European Central Bank. The data is categorized under Global Database’s France – Table FR.M001: Key Interest Rates: European Central Bank.

Slovakia ECB Interest Rate: Marginal Lending Facility data was reported at 3.150 % pa in Feb 2025. This records a decrease from the previous number of 3.400 % pa for Jan 2025. Slovakia ECB Interest Rate: Marginal Lending Facility data is updated monthly, averaging 2.000 % pa from Jan 1999 (Median) to Feb 2025, with 314 observations. The data reached an all-time high of 5.750 % pa in Apr 2001 and a record low of 0.250 % pa in Jun 2022. Slovakia ECB Interest Rate: Marginal Lending Facility data remains active status in CEIC and is reported by European Central Bank. The data is categorized under Global Database’s Slovakia – Table SK.M001: Key Interest Rates: European Central Bank.

The average for 2020 based on 13 countries was 3.71 interest rate points. The highest value was in Ukraine: 8.21 interest rate points and the lowest value was in Hungary: 1.49 interest rate points. The indicator is available from 1980 to 2020. Below is a chart for all countries where data are available.

As of July 2024, Estonia was the country in the euro area with the highest annualised interest rate for consumer loans and other credit amounting to over 14 percent. The average interest rate for a consumer loan in the euro area was approximately 7.8 percent. Meanwhile, consumer loans with a maturity of over five year had the highest interest rates in the eurozone in 2024.