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. source: European Central Bank

The benchmark interest rate In the Euro Area was last recorded at 3.15 percent. Interest Rate in Euro Area averaged 1.86 percent from 1998 until 2024, reaching an all time high of 4.75 percent in October of 2000 and a record low of 0.00 percent in March of 2016. This page provides - Euro Area Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Euro Area Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on January of 2025.

The benchmark interest rate In the Euro Area was last recorded at 3.15 percent. Interest Rate in Euro Area is expected to be 3.15 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Euro Area Interest Rate is projected to trend around 1.90 percent in 2025, according to our econometric models.




Calendar GMT Reference Actual Previous Consensus TEForecast
2024-09-12 12:15 PM ECB Interest Rate Decision 3.65% 4.25% 3.65% 3.65%
2024-10-17 12:15 PM ECB Interest Rate Decision 3.4% 3.65% 3.4% 3.4%
2024-12-12 01:15 PM ECB Interest Rate Decision 3.15% 3.4% 3.15% 3.15%
2025-01-30 01:15 PM ECB Interest Rate Decision 3.15% 2.9%
2025-02-19 08:00 AM ECB Non-Monetary Policy Meeting
2025-03-06 01:15 PM ECB Interest Rate Decision 2.65%


Related Last Previous Unit Reference
Central Bank Balance Sheet 6357247.00 6344802.00 EUR Million Dec 2024
Deposit Facility Rate 3.00 3.25 percent Dec 2024
Foreign Exchange Reserves 97.67 96.82 USD Billion Nov 2024
ECB Interest Rate 3.15 3.40 percent Dec 2024
Marginal Lending Rate 3.40 3.65 percent Dec 2024
Loans to Households YoY 0.90 0.80 percent Nov 2024
Loans to Non-financial Corporations 5162380.00 5159611.00 EUR Million Nov 2024
Longer-Term Refinancing Operations 40.73 49.16 EUR Billion Dec 2024
Money Supply M0 4659179.00 4718353.00 EUR Million Nov 2024
Money Supply M1 10547639.00 10437687.00 EUR Million Nov 2024
Money Supply M2 15540007.00 15421337.00 EUR Million Nov 2024
Money Supply M3 16681871.00 16575480.00 EUR Million Nov 2024
Refinancing Operations 9101.00 7.79 EUR Billion Dec 2024

Euro Area Interest Rate
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.
Actual Previous Highest Lowest Dates Unit Frequency
3.15 3.40 4.75 0.00 1998 - 2024 percent Daily


News Stream
ECB Cuts Rates by Another 25 bps as Expected
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.
2024-12-12
ECB to Cut Rates for 4th Time
The ECB is expected to cut the key deposit rate by 25bps to 3% in its final meeting of 2024, marking a fourth consecutive reduction. Investors are looking for hints on future policy, with many anticipating faster rate cuts as the Eurozone grapples with economic weakness, political uncertainty in Germany and France, and a second Trump administration. Markets now forecast quarter-point cuts at each meeting through June 2025, potentially bringing the deposit rate to the broadly neutral rate of 2%. Policymakers will also unveil updated economic projections, with analysts expecting downgraded 2025 growth forecasts and lower inflation estimates.
2024-12-12
ECB Discusses Future Rate Cuts: Minutes
The European Central Bank (ECB) has signaled growing consideration of rate cuts, according to the accounts of its October meeting. While inflation is expected to ease, mainly due to falling energy prices, officials remain cautious about domestic inflationary pressures, particularly strong wage growth and sluggish labor productivity. Despite the more optimistic inflation projections, the ECB stressed the importance of gathering more data before making policy changes. Policymakers emphasized that any decision on rate cuts would depend on the economic outlook and further evidence of inflationary pressures subsiding, signaling a careful and data-driven approach.
2024-11-14