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.

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 other cuts in the first half of 2025, setting the rate at 2.15 percent in June 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.

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.

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 the first half of 2025, the ECB implemented four further cuts, setting the rate at two percent in June 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.

Graph and download economic data for Interest Rates: 3-Month or 90-Day Rates and Yields: Interbank Rates: Total for Euro Area (19 Countries) (IR3TIB01EZQ156N) from Q1 1994 to Q2 2025 about interbank, Euro Area, 3-month, Europe, yield, interest rate, interest, and rate.

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 two percent by June 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.

Slovakia ECB Interest Rate: Marginal Lending Facility data was reported at 2.650 % pa in Apr 2025. This records a decrease from the previous number of 2.900 % pa for Mar 2025. Slovakia ECB Interest Rate: Marginal Lending Facility data is updated monthly, averaging 2.125 % pa from Jan 1999 (Median) to Apr 2025, with 316 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.

Graph and download economic data for ECB Deposit Facility Rate for Euro Area (ECBDFR) from 1999-01-01 to 2025-08-18 about overnight, Euro Area, deposits, Europe, and rate.

The average for 2023 based on 16 countries was 1.26 percent. The highest value was in Norway: 17.82 percent and the lowest value was in Montenegro: -3.8 percent. The indicator is available from 1961 to 2023. Below is a chart for all countries where data are available.

Finland ECB Interest Rate: Marginal Lending Facility data was reported at 2.650 % pa in Apr 2025. This records a decrease from the previous number of 2.900 % pa for Mar 2025. Finland ECB Interest Rate: Marginal Lending Facility data is updated monthly, averaging 2.125 % pa from Jan 1999 (Median) to Apr 2025, with 316 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.

The average for 2023 based on 17 countries was 8.37 percent. The highest value was in Ukraine: 22.11 percent and the lowest value was in Switzerland: 2.86 percent. The indicator is available from 1960 to 2024. Below is a chart for all countries where data are available.

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 *** percent in January 2025 to *** percent in 2026.

Graph and download economic data for Interest Rates, Discount Rate for Euro Area from Jan 1999 to May 2017 about Euro Area, Europe, interest rate, interest, and rate.

European Union Key Interest Rate: Month End: 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. European Union Key Interest Rate: Month End: 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. European Union Key Interest Rate: Month End: Deposit 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.

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 Jul 2025 about interbank, overnight, Euro Area, Europe, interest rate, interest, and rate.

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. The ECB continued the series of reductions in the first half of 2025, setting the rate at 2.15 percent in June 2025. 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 two percent by June 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.

Deposit Interest Rate In the Euro Area remained unchanged at 2 percent in August. This dataset provides - Euro Area Deposit Interest Rate- actual values, historical data, forecast, chart, statistics, economic calendar and news.

Graph and download economic data for Interest Rates, Discount Rate for Euro Area (INTDSREZQ193N) from Q1 1999 to Q1 2017 about Euro Area, Europe, interest rate, interest, and rate.

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.