Euro Area Interest Rate

Last Release

Jul 18, 2024

Actual

4.25

Units In

4.25

Frequency

Daily

Next Release

Jun 05, 2025

Time to Release

1 Months 16 Days 6 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 cut all three of its key interest rates by 25 basis points, lowering the main refinancing rate to 2.40%, the deposit rate to 2.25% and the marginal lending facility to 2.65%, as expected. The decision reflects growing confidence that inflation is on track to return sustainably to the 2% target. Both headline and core inflation have continued to ease, with services inflation also cooling. Wage growth is moderating, and firms are absorbing some of the cost pressure. However, risks to the Euro Area outlook remain, especially due to rising global trade tensions, which are hurting confidence and tightening financial conditions. The ECB acknowledged that growth prospects have weakened and emphasized a data-dependent approach going forward. It made no commitment to further cuts, underlining that future decisions will depend on economic data, inflation dynamics, and the strength of monetary transmission.