Euro Area Interest Rate

Last Release

Jul 18, 2024

Actual

4.25

Units In

4.25

Frequency

Daily

Next Release

Jan 30, 2025

Time to Release

1 Months 16 Days 12 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 European Central Bank (ECB) has decided to cut its key interest rates for the fourth time this year by 25 bps in December 2024, as expected. This move reflects a more favorable inflation outlook and improvements in monetary policy transmission. Inflation is expected to gradually decrease, with forecasts of 2.4% in 2024, 2.1% in 2025, and 1.9% in 2026. Core inflation, excluding energy and food, is also expected to fall, with a target of 2% in the medium term. Despite easing financing conditions due to the rate cuts, borrowing costs remain tight due to previous hikes still affecting existing loans. Economic recovery is projected to be slower than before, with growth expected at 0.7% in 2024, 1.1% in 2025, and 1.4% in 2026. The ECB remains focused on ensuring inflation returns to its 2% target and will adjust its policies based on incoming data, without committing to a fixed rate path.