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 June 2024, the United States had the highest 10-year government bond yield among developed economies at 4.09 percent, while Switzerland had the lowest at 0.69 percent. These rates serve as important benchmarks for borrowing costs and economic expectations worldwide.

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.

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.

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.

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.

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.

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) 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 in early 2025, the latter one setting the rate at 3.15 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.

European Union - Dispersion around the at Risk of Poverty threshold for elderly people: at Risk of Poverty rate (cut-off point: 50% of median equivalised income) was 8.60% in December of 2023, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for European Union - Dispersion around the at Risk of Poverty threshold for elderly people: at Risk of Poverty rate (cut-off point: 50% of median equivalised income) - last updated from the EUROSTAT on March of 2025. Historically, European Union - Dispersion around the at Risk of Poverty threshold for elderly people: at Risk of Poverty rate (cut-off point: 50% of median equivalised income) reached a record high of 9.10% in December of 2020 and a record low of 6.20% in December of 2014.

Key information about Germany Long Term Interest Rate

• Germany Long Term Interest Rate: Month Avg: Germany: ECB Harmonised was reported at 2.18 % pa in Dec 2024, compared with 2.31 % pa in the previous month.
• Germany Long Term Interest Rate data is updated monthly, available from Jan 1990 to Dec 2024.
• 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 3.15 % pa in Dec 2024.
• Germany Exchange Rate against USD averaged 0.92 (USD/EUR) in Jun 2023.

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.

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.

Euro Area - Dispersion around the at Risk of Poverty threshold: at Risk of Poverty rate (cut-off point: 70% of median equivalised income) was 24.20% in December of 2023, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Euro Area - Dispersion around the at Risk of Poverty threshold: at Risk of Poverty rate (cut-off point: 70% of median equivalised income) - last updated from the EUROSTAT on March of 2025. Historically, Euro Area - Dispersion around the at Risk of Poverty threshold: at Risk of Poverty rate (cut-off point: 70% of median equivalised income) reached a record high of 25.20% in December of 2016 and a record low of 24.00% in December of 2010.

European Union - Dispersion around the at Risk of Poverty threshold: at Risk of Poverty rate (cut-off point: 50% of median equivalised income) was 9.90% in December of 2023, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for European Union - Dispersion around the at Risk of Poverty threshold: at Risk of Poverty rate (cut-off point: 50% of median equivalised income) - last updated from the EUROSTAT on March of 2025. Historically, European Union - Dispersion around the at Risk of Poverty threshold: at Risk of Poverty rate (cut-off point: 50% of median equivalised income) reached a record high of 11.00% in December of 2016 and a record low of 9.90% in December of 2023.

High inflation driven by rising energy and food costs are causing a severe cost of living crisis in Europe. As of September 2022, the majority of people surveyed in seven European countries advised they had curbed their spending as a consquence, ranging from 69 percent in Italy to 54 percent in Sweden.

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.

Attitude towards the EU and the euro. Topics: assessment of the own country’s membership in the EU as a good thing; having the euro is a good thing for the own country and for Europe; changes in feeling European due to the euro; difficulty to distinguish and handle euro bank notes and specific coins; opinion about the number of existing coins and which euro coin denominations should be removed; conversion from the price in euro to the national currency when it comes to exceptional and common purchases; assessment of dual price displays as useful (only in SI, MT, CY); prices increased during the changeover period (only in SI, MT, CY); development of the inflation rate compared with the situation before the introduction of the euro; travels outside the own country at least once a year; impact of the euro introduction: easier traveling, easier price comparisons with other countries, reduction of cross-border banking charges; state of national budget in 2006: surplus, deficit, balance; awareness of the ´Stability and Growth Pact´; need for significant reforms to improve economy; successful reforms in other euro area countries put pressure on national government to reform; governments need to save for the ageing populations; taxes should be increased to finance economic reforms; expenditures should be reduced to finance economic reforms; EU should play an active role in national reforms; importance of reforms in the areas: labour market, health system, pension system, social security system, market reforms, taxation, education systems, reforms in general, reforms in other areas; personally affected by the aforementioned reforms; expected impact of the reforms on national economy; inflation rate in the own country last year; expectations regarding the inflation rate in the current year; development of household income since last year and expectations for the current year. Demography: sex; age; age at end of education; occupation; professional position; type of community; household composition and household size; own a mobile phone and fixed (landline) phone. Additionally coded was: respondent ID; interviewer ID; language of the interview; country; date of interview; time of the beginning of the interview; duration of the interview; type of phone line; region; weighting factor. Einstellung zur Europäischen Union und zur Euro-Einführung. Wirtschaftliche Situation. Themen: EU-Mitgliedschaft ist eine gute Sache; der Euro ist eine gute Sache für das Befragungsland sowie für Europa; Veränderung des Identifikationsgefühls als Europäer durch den Euro; Schwierigkeiten mit dem Unterscheiden der Euro-Münzen und Banknoten sowie Nennung der Münzen, die Schwierigkeiten bereiten; Zufriedenheit mit der Menge der unterschiedlichen Münzarten; Münzen, die abgeschafft werden sollten; Umrechnen in die alte nationale Währung bei täglichen oder außergewöhnlichen Einkäufen; nur in Zypern, Malta und Slowenien: Präferenz für duale Preisauszeichnung; empfundene Preiserhöhungen durch die Euro-Einführung; an alle: Inflationsschub durch die Euro-Einführung; Auslandsreisen; Vorteile durch den Euro: kostengünstigeres Reisen, leichterer Preisvergleich, Verringerung der grenzüberschreitenden Bankgebühren; Kenntnis eines Überschusses des Staatshaushalts im Befragungsland; Kenntnis des Stabilitäts- und Wachstumspakts; Zustimmung zu Reformen: zur Leistungssteigerung der Wirtschaft, Reformen in anderen Euro-Ländern üben Druck auf das eigene Land aus, Notwendigkeit des Sparens zur Vorbereitung auf Auswirkungen des demographischen Wandels, Steuererhöhung zur Finanzierung von Reformen, Reduzierung der Sozialausgaben zur Finanzierung von Reformen, Wunsch nach aktiver Rolle der EU beim Reformprozess im Befragungsland; wichtigste Reformbereiche; eigene Betroffenheit von genannten Reformbereichen; positive oder negative Wirkung der Reformen auf die nationale Wirtschaft; Inflationsrate im letzten Jahr im Befragungsland; erwartete Inflationsrate; Entwicklung des Haushaltseinkommens des Befragten im letzten Jahr sowie erwartete zukünftige Entwicklung. Demographie: Geschlecht; Alter; Alter bei Beendigung der Ausbildung; Beruf; berufliche Stellung; Urbanisierungsgrad; Haushaltszusammensetzung und Haushaltsgröße; Besitz eines Mobiltelefons; Festnetztelefon im Haushalt. Zusätzlich verkodet wurde: Befragten-ID; Interviewer-ID; Interviewsprache; Land; Interviewdatum; Interviewdauer (Interviewbeginn und Interviewende); Interviewmodus (Mobiltelefon oder Festnetz); Region; Gewichtungsfaktor.

Attitude towards the EU and the euro.
Topics: assessment of the own country’s membership in the EU as a good thing; having the euro is a good thing for the own country and for Europe; changes in feeling European due to the euro; difficulty to distinguish and handle euro bank notes and specific coins; opinion about the number of existing coins and which euro coin denominations should be removed; conversion from the price in euro to the national currency when it comes to exceptional and common purchases; assessment of dual price displays as useful (only in SI, MT, CY); prices increased during the changeover period (only in SI, MT, CY); development of the inflation rate compared with the situation before the introduction of the euro; travels outside the own country at least once a year; impact of the euro introduction: easier traveling, easier price comparisons with other countries, reduction of cross-border banking charges; state of national budget in 2006: surplus, deficit, balance; awareness of the ´Stability and Growth Pact´; need for significant reforms to improve economy; successful reforms in other euro area countries put pressure on national government to reform; governments need to save for the ageing populations; taxes should be increased to finance economic reforms; expenditures should be reduced to finance economic reforms; EU should play an active role in national reforms; importance of reforms in the areas: labour market, health system, pension system, social security system, market reforms, taxation, education systems, reforms in general, reforms in other areas; personally affected by the aforementioned reforms; expected impact of the reforms on national economy; inflation rate in the own country last year; expectations regarding the inflation rate in the current year; development of household income since last year and expectations for the current year.

Demography: sex; age; age at end of education; occupation; professional position; type of community; household composition and household size; own a mobile phone and fixed (landline) phone.

Additionally coded was: respondent ID; interviewer ID; language of the interview; country; date of interview; time of the beginning of the interview; duration of the interview; type of phone line; region; weighting factor.

Between January 2018 and January 2025, Germany's inflation rate experienced significant volatility. Initially fluctuating between 0.3 and 3.1 percent, the rate escalated dramatically, reaching a peak of 10.4 percent in October 2022. By September 2024, the inflation rate had moderated to 1.6 percent. However, inflation began rising again towards the end of 2024, standing at 2.6 percent in December. The European Central Bank (ECB) responded to these inflationary pressures with a series of interest rate adjustments. After maintaining historically low rates, the ECB initiated its first rate hike since March 2016 in July 2022, raising the rate to 0.5 percent. The interest rate continued to increase, stabilizing at 4.5 percent from September 2023 to June 2024. In a notable shift, June 2024 marked the first rate cut during this period. It was followed by a series of rate cuts until the end of the year, with the last cut in 2024 setting the rate at 3.15 percent.

Euro Short Term Rate In the Euro Area increased to 2.67 percent on Thursday March 6 from 2.66 in the previous day. This dataset includes a chart with historical data for Euro Area Euro Short Term Rate.