Between January 2018 and May 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. Early 2025 saw inflation decrease to 2.2 percent. 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. Two further cuts were implemented in early 2025, setting the rate at 2.65 percent in March 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.

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.

Bank Lending Rate in Germany decreased to 4.09 percent in May from 4.23 percent in April of 2025. This dataset provides the latest reported value for - Germany Bank Lending Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Key information about Germany Policy Rate

• Germany 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.
• Germany 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, Germany Short Term Interest Rate: Month End: EURIBOR: 3 Months was reported at -0.57 % pa in Nov 2021.
• Its Long Term Interest Rate (Long Term Interest Rate: Month Avg: Germany: ECB Harmonised ) was reported at 2.18 % pa in Dec 2024.
• Germany Exchange Rate against USD averaged 0.92 (USD/EUR) in Jun 2023.
• Its Real Effective Exchange Rate was 93.96 in Jan 2025.

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.

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.

Key information about Germany Bank Lending Rate

• Germany Bank Lending Rate was reported at 4.640 % pa in Jan 2025.
• This records a decrease from the previous number of 4.880 % pa for Dec 2024.
• Germany Bank Lending Rate data is updated monthly, averaging 3.340 % pa from Jan 2003 to Jan 2025, with 265 observations.
• The data reached an all-time high of 6.550 % pa in Dec 2007 and a record low of 1.760 % pa in Oct 2021.
• Germany Bank Lending Rate data remains active status in CEIC and is reported by CEIC Data.
• The data is categorized under World Trend Plus’s Global Economic Monitor – Table: Bank Lending Rate: Monthly.

Graph and download economic data for Interest Rates: Immediate Rates (< 24 Hours): Call Money/Interbank Rate: Total for Germany (IRSTCI01DEM156N) from Jan 1960 to May 2025 about interbank, overnight, Germany, interest rate, interest, and rate.

Key information about Germany Short Term Interest Rate

• Germany 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.
• Germany 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, Germany Long Term Interest Rate: Month Avg: Germany: ECB Harmonised was reported at 2.66 % pa in Sep 2023.
• The cash rate (Policy Rate: Month End: Main Refinancing Operations) was set at 4.50 % pa in Sep 2023.
• Germany Exchange Rate against USD averaged 0.92 (USD/EUR) in Jun 2023.

After a period of record-low mortgage interest rates, the cost of mortgage borrowing in Germany surged in 2022. In 2019, mortgage rates declined notably, falling as low as **** percent in December 2020. This downward trend reversed in 2021, as mortgage rates started to gradually pick up. Five-to-ten-year mortgage loans had the lowest rates in March 2025 at **** percent, while floating rate mortgages up to one year were the most expensive at **** percent. Mortgages with over **-year fixed period – the most popular loan type among homebuyers — had an interest rate of **** percent. Why did mortgage rates in Germany increase? In 2022, the annual inflation rate in Germany experienced a swift rise, prompting the central bank to raise interest rates to counter this surge. The European Central Bank (ECB) is responsible for determining Germany's central bank interest rate. In July 2022, following a prolonged period of stability, the average interest rates in Germany began a steady rise, which persisted consistently thereafter.  This increase is intended to stabilize prices, but it also means higher borrowing costs for those seeking mortgages. Downturn in Germany's home loan borrowing From 2022 onward, the gross residential mortgage lending in Germany fell dramatically. Besides the higher interest rates, the downturn can be explained by the slowed pace of economic growth, which makes individuals and businesses more cautious about big investments such as buying a home. Additionally, the German housing market suffers a chronic undersupply, meaning that homebuyers often struggle to find an affordable home to purchase.

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.

Between March 2024 and March 2025, the Reserve Bank of Zimbabwe led the ranking of central banks with the largest annual increases in international reserves assets. The central bank saw its reserve assets increase by 393 percent. It was followed by the National Bank of Ethiopia, with an increase of 150 percent. On the other hand, several central banks experienced significant decreases in international reserve assets, with the Central Bank of Montenegro leading the list with a staggering 32 percent decrease.

On the occasion of the 50th anniversary of the currency reform and of the introduction of the German D-mark on 20th June 1948, the German Bundesbank – in its function as central bank and bank of issue of the Federal Republic of Germany – presented long series of monetary statistics in 1998. In approximately 1,400 data charts, extensive information about the development of the German finance and banking industry, the capital market, and the foreign trade relations are given.

In total, approximately 25,000 time series about the following core subjects were collected: general overviews of banking statistics, bank of issue, credit institutions, minimum reserves, interest rates, statistics of exchange rates, capital market, public finances, foreign trade, macroeconomic capital finance accounts and annual accounts of West German companies.

Factual classification of the tables in HISTAT: A. Selected data regarding the economic development A.1 Monetary development A.2 Population and labour market A.3 Macroeconomic production and demand A.4 Prices and wages A.5 Distribution of the national income and incomes of the private households

B. Foreign trade (currently not completed in HISTAT; access to the subjects B2, B3, B4, B7 see below) B1. Foreign debts and liabilities of domestic companies B.2 Foreign debts and liabilities of the credit institutions B.3 Foreign cross ownerships of German companies B.4 Regional balances of payment B.5 State of assets compared to other countries B.6 Balance of payments B.7 Additional specifications regarding the balance of payments B.8 Foreign payments by the German Bundesbank Any data including a differentiation of countries (EU countries, other industrialised countries, some developing countries, countries of the off-shore finance centres, OPEC countries, reform countries) are currently only available by placing an order with the ZHSF Data Service (ordering address see below)

C. General overviews of bank statistics C.1 Consolidated balance of the banking system, assets C.2 Consolidated balance of the banking system, liabilities C.3 Cash circulation C.4 Development of money supply in connection with the balance C.5 Money demand of the Central Bank

D. Exchange rate statistics D.1 External value indeces D.2 Exchange rates at the Frankfurt stock exchange D.3 Values of the ECU D.4 Values of the extra educational law

E. Macroeconomic capital finance account E1. Domestic financial sectors E2. Domestic non-financial sectors E3. Other countries

F. Annual accounts of West German companies F.1 All German companies F.2 Building industry F.3 Clothing trade F.4 Chemical industry F.5 Retail industry (incl. automobile trade and service stations) F.6 Electrical engineering F.7 Power and water supply F.8 Food industry F.9 Glas industry, ceramics, processing of stones and earths F.10 Wholesale trade and trade negotiations F.11 Production of rubber and plastic goods F.12 Production of automobiles and automobile parts F.13 Production of metal goods F.14 Timber industry F.15 Engineering F.16 Medical, measurement, driving and control technology F.17 Metal production and metal working F.18 Paper industry F.19 Textile industry F.20 Manufacturing industry F.21 Transportation (without rail) F.22 Publishing and printing

G. Capital market (currently not in HISTAT; access see below) G1. Shares of domestic issuers G2. General overviews G3. Exchange transactions, option and future business G4. Domestic capital investment companies G5. Bonds of foreign issuers G6. Bonds of domestic issuers

H. Credit institutions (currently not in HISTAT; access see below) H1. Assets H2. Liabilities H3. Assets and liabilities of the foreign branches and foreign subsidiaries of domestic banks H4. Building associations H5. Deposit statistics H6. Deposits and loans H7. profit situation of the banks H8. domestic and foreign debts and liabilities H9. Circulating bearer bonds according to their terms and bank group H10. Loans H11. Savings deposits and savings certificates H12. Savings business turnover according to bank group and endorsed disposals of non-bank financial companies H13. equity stocks and shares

I. Minimum reserves (currently not registered in HISTAT; access see below) I.1 Overview I.2 Itemisation according to steps of progression (from March 1977) I3. Itemisation according to reserve classes (until February 1977) I1.1 Reserve stockpiles according to bank group, obligatory reserve liabilities I1.2. Reserve stockpiles according to bank group, Reserve debits I.2 Reserve ratios

J. Central bank (currently not registered in HISTAT; access see below) J.1 Assets J.2 Liabilities

K. Public finances K.1 Financial development of the public budgeting K1. Public debts

L. Interest rates L.1 Money market rates L1. Bank interest rates (currently not registered in HISTAT; access see below).

In the last five years, the mortgage lending sector has seen negative growth. During this period, industry turnover fell by an average of 3.8% per year, meaning that it is expected to amount to 6.5 billion euros in 2024. This nevertheless corresponds to an increase of 3.1% compared to the previous year. As in all sectors dedicated to the provision of financial services, industry turnover, which in this sector is made up of interest and commission income, was negatively impacted by the low level of interest rates. However, the mortgage banks were able to hold their own comparatively well on the market thanks to their favourable refinancing options. Thanks to their comparatively low default risk, Pfandbriefe have become increasingly popular with institutional investors such as insurers in recent years.Industry sales in 2024 will be influenced by the recent increases in the key interest rate by the European Central Bank (ECB). The sector can also build on the high demand for real estate in Germany, which is primarily based on ongoing urbanisation and positive economic growth. The ECB resumed its bond-buying programme in 2020 and expanded it during the coronavirus crisis, allowing real estate banks to refinance themselves at favourable conditions. At the same time, the price of Pfandbriefe has risen thanks to the increased demand for them, which has had a positive impact on this sector. Competition in the market for property loans will remain strong in 2024, meaning that price competition is likely to intensify in the current year.IBISWorld expects industry turnover to increase by an average of 3.4% annually over the next five years, so that it is likely to amount to 7.7 billion euros in 2029. Interest income in particular is expected to increase due to rising interest rates on the capital markets. However, commission income is likely to fall over the next five years as price competition continues to intensify. The search for ways to increase efficiency is likely to lead to an increased reduction in the number of employees.

The inflation rate in Germany was 1.35 percent in 2019. The current rate meets the European Central Bank’s target rate, which is “below, but close to, 2 percent.” Many central bankers favor inflation between 2 and 3 percent, but Germans in particular would rather risk deflation than too much inflation.

Causes of inflation

Central bankers like low, stable inflation because this is a sign of a growing economy. When the economy grows, workers become more productive and spend more, and prices slowly rise. Monetary policy can cause inflation, but Germany has given this responsibility to the European Central Bank (ECB). Importantly, inflation expectations affect inflation, making it a self-fulfilling prophecy.

The German context

During the eurozone crisis, German politicians were advocating for the ECB to raise interest rates quickly. This would have reduced inflation, possibly causing deflation, but would have presented another hurdle for the struggling Greek economy. This is because of the hyperinflation of the Weimar Republic in the 1920s, when Germans carried their pay home in wheelbarrows because the banknotes had lost so much value. Ever since, Germans often warn that inflation harms pensioners and that personal provisions are necessary in any case. Fortunately for them, this statistic forecasts stable, modest inflation that does not alarm many economists.

Os dados de Taxas de Juros da Alemanha foram registrados em 2.90 % pa em 2025-02. Este registro de uma queda com relação aos números anteriores de 3.15 % pa em 2025-01. Os dados de Taxas de Juros da Alemanha são atualizados por mês, com uma média de 1.25 % pa em 1999-01 até 2025-02, com 314 observações. Os dados alcançaram um alto recorde de 4.75 % pa em 2001-04 e um baixo recorde de 0.00 % pa em 2022-06. Os dados de Taxas de Juros da Alemanha permanecem com status ativo na CEIC e são reportados pela fonte: European Central Bank. Os dados são classificados sob o Global Database’ Alemanha – Table DE.M001: Key Interest Rates: European Central Bank.

With this statistical documentation, the German Bundesbank has submitted materials on the development of the finance and banking industry for the last hundred years.

Listing of the charts in HISTAT: A. Selected data regarding the economic development A.1.01a Monetary development (1876-1923) A.1.01b Monetary development (1924-1945) A.1.02 General economic development (1876-1944)

B. Bank statistical general overviews B.I.1.01 Cash circulation (1876-1945) B.I.1.04 Particulars about the development of the deposits of the Reichsbank and the bank groups (1876-1920) B.I.1.05 Particulars about credit grants by the Reichsbank and the bank groups (1876-1920) B.I.1.06 Development of the deposits of the Reichsbank and the credit institutions (1925-1944) B.I.1.07 Credit grants by the Reichsbank and the credit institutions (1924-1944) B.I.1.09 Circulation of bills (1876-1913) B.I.1.09 Circulation of bills and its prevention (1925-1942)

D. Credit institutions D.I.1.03 Land credit institutions under public law (1860-1918) D.I.1.04 Savings banks in the German Reich (1875-1920) D.I.1.05 Savings banks in Prussia (1860-1920) D.I.1.07 Credit cooperatives, total (1896-1919) D.I.1.08 Commercial credit cooperatives (1860-1920) D.II.2.01a Number of credit institutions by bank groups (1928-1940) D.II.2.01b Total assets of credit institutions by bank groups (1928-1940)

F. Interest rates F.2.01 Development of selected interest rates and yield returns (1876-1944) F.2.03 Money market – domestic and foreign interest rates (1924-1944) F.2.05 Debit and credit interest rates of the credit institutions (1924-1944)

G. Capital market G.I.1.01a Turnover of securities by domestic issuers (1870-1918) G.I.1.01b Turnover of securities by domestic issuers (1924-1944) G.I.1.07a Domestic issue of securities (1883-1913) G.I.1.07b Domestic issue of securities (1824-1943) G.I.2.01a Share capital and share prices of domestic companies (1870-1922) G.I.2.01b Share capital and share prices of domestic companies (1925-1943) G.I.2.02a Index of share prices (1870-1913) G.I.2.02b Index of share prices (1914-1943) G.I.2.03 Market prices and yield returns of domestic securities (1928-1943) G.I.2.04 Funds and productive investments by insurance companies (1913-1940)

H. National debt H.1.01 Goverment debts (1877-1945)

J. Foreign trade J.I.1.01 Important items of the balance of payments (1872-1948) J.I.1.03 Foreign trade (trade of special goods) per commodity group (1872-1943) J.I.1.04a Exchange of services with foreign countries (total) (1924-1935) J.I.1.04b Exchange of services with foreign countries (other services) (1924-1935) J.I.1.05 Transfer balance after reparation payments (1924-1933) J.I.1.07 Capital transactions with foreign countries (1924-1935) J.I.2.01 Gold and foreign currency reserves of the Reichsbank (1876-1944) J.I.2.02 Foreign liabilities of the credit institutions (1925-1943) J.I.2.03 Foreign debts and liabilities of the major banks of Berlin (1928-1943).

The industry players are the development banks of the federal and state governments. Turnover is expected to total €27.4 billion in 2024, which corresponds to an increase of 1.1% compared to the previous year. Between 2019 and 2024, industry turnover increased by an average of 0.5% per year. As the turnover of development banks consists almost exclusively of interest income plus comparatively low commission income, the past phase of low interest rates and the expiry of higher-interest legacy loans have reduced the level of income.Although the development banks were also confronted with falling earnings due to the low interest rates following the financial crisis in the years 2007 to 2009, they were able to benefit from the post-crisis economic environment in contrast to other credit institutions. Since then, most banks have found it very difficult to refinance themselves on the capital market at favourable conditions, as many investors consider the default risk for banks to be significantly higher than before the financial crisis. As the development banks can rely on the federal and state governments, they receive very good ratings and can refinance themselves at favourable conditions, enabling them to expand their business. Following the outbreak of the coronavirus pandemic, the development banks were faced with the task of making a significant contribution to supporting the German economy during the crisis. Due to the effects of the war in Ukraine, the volume of funding will remain at a high level in the current year.An average growth rate of 0.5% per year is expected for the period from 2024 to 2029. This means that industry turnover is expected to amount to 28.2 billion euros in 2029. IBISWorld anticipates a slow and slight decline in interest rates over the next five years, meaning that interest income is likely to fall slightly. At the same time, a high volume of funding is expected, as development banks are likely to play a key role in the recovery of the German economy and its transformation towards sustainability and digitalisation.

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