Euro Area Interest Rate

Last Release

Jul 18, 2024

Actual

4.25

Units In

4.25

Frequency

Daily

Next Release

Apr 17, 2025

Time to Release

1 Months 9 Days 5 Hours

Highest	Lowest	Average	Date Range	Source
4.75 Oct 2000	0.5 Jul 2022	1.84 %	1998-2024	European Central Bank

In the Euro Area, benchmark interest rate is set by the Governing Council of the European Central Bank. The primary objective of the ECB’s monetary policy is to maintain price stability which is to keep inflation below, but close to 2 percent over the medium term. In times of prolonged low inflation and low interest rates, ECB may also adopt non-standard monetary policy measures, such as asset purchase programmes. The official interest rate is the Main refinancing operations rate. .

Latest Updates

The ECB lowered the three key interest rates by 25 basis points, as expected, reducing the deposit facility rate to 2.50%, the main refinancing rate to 2.65%, and the marginal lending rate to 2.90%. This decision reflects an updated assessment of the inflation outlook and monetary policy transmission. The ECB acknowledged that monetary policy is becoming meaningfully less restrictive, easing borrowing costs for businesses and households. Inflation is projected to average 2.3% in 2025, 1.9% in 2026, and 2.0% in 2027, with core inflation also nearing the 2% target. Although domestic inflation remains elevated due to delayed wage and price adjustments, wage growth is moderating. Economic growth forecasts were revised downward to 0.9% for 2025 and 1.2% for 2026, reflecting weak exports and investment. The ECB remains data-dependent and will adjust its policy as needed to ensure inflation stabilizes around its 2% medium-term target without committing to a specific rate path.