Ecb Deposit Rate
- The ECB introduced negative rates in June 2014, lowering its deposit rate to -0.1% to stimulate the economy. Describing the euro zone economy as mired in a period of “protracted” weakness, ECB.
- The ECB left its key deposit facility rate unchanged at -0.5% on January 21st 2021 as expected. Deposit Interest Rate in the Euro Area averaged 1.27 percent from 1999 until 2021, reaching an all time high of 3.75 percent in October of 2000 and a record low of -0.50 percent in September of 2019. This page provides - Euro Area Deposit Interest Rate- actual values, historical data, forecast.
Ecb Deposit Rate Decision
Let’s start at the beginning. The main key ECB rate is the refinancing rate. At the time of writing, the ECB refinancing rate is 0.050%, its lowest level ever. What does this 0.050% rate mean?
Ecb Rate 2020
To keep the prices stable (inflation below, but close to, 2%) the European Central Bank uses several monetary policy instruments to steer interest rates and manage banking liquidity. The most traditional operations are what we call the Main Refinancing Operations (MRO). When liquidity is needed, a bank can borrow directly from the ECB. Every week, banks of the Eurozone go (virtually) to the ECB desk to borrow money at the refinancing rate fixed by the ECB (0.050%). The loan is made under the form of a Repurchase Operation (Repo). The bank sells security assets to the ECB and borrows money. One week later, the bank gives the money back with interest to the ECB and recovers its security assets.
The European Central Bank (ECB) is the central bank of the 19 European Union countries which have adopted the euro. Our main task is to maintain price stability in the euro area and so preserve the purchasing power of the single currency.
The two other key ECB rates are the overnight deposit rate (-0.20%) and the overnight marginal lending rate (0.30%). The first is the interest rate paid by the ECB to banks having a deposit (for the moment, it is the opposite because the rate is negative). The second is the rate paid by banks to the ECB when they want to use overnight credit outside the refinancing operations.
Ecb Negative Rates
| Date (with effect from) | Deposit facility | Main refinancing operations | Marginal lending facility | ||
|---|---|---|---|---|---|
| Fixed rate tenders Fixed rate | Variable rate tenders Minimum bid rate | ||||
| 2019 | 18 Sep. | −0.50 | 0.00 | - | 0.25 |
| 2016 | 16 Mar. | −0.40 | 0.00 | - | 0.25 |
| 2015 | 9 Dec. | −0.30 | 0.05 | - | 0.30 |
| 2014 | 10 Sep. | −0.20 | 0.05 | - | 0.30 |
| 11 Jun. | −0.10 | 0.15 | - | 0.40 | |
| 2013 | 13 Nov. | 0.00 | 0.25 | - | 0.75 |
| 8 May. | 0.00 | 0.50 | - | 1.00 | |
| 2012 | 11 Jul. | 0.00 | 0.75 | - | 1.50 |
| 2011 | 14 Dec. | 0.25 | 1.00 | - | 1.75 |
| 9 Nov. | 0.50 | 1.25 | - | 2.00 | |
| 13 Jul. | 0.75 | 1.50 | - | 2.25 | |
| 13 Apr. | 0.50 | 1.25 | - | 2.00 | |
| 2009 | 13 May | 0.25 | 1.00 | - | 1.75 |
| 8 Apr. | 0.25 | 1.25 | - | 2.25 | |
| 11 Mar. | 0.50 | 1.50 | - | 2.50 | |
| 21 Jan. | 1.00 | 2.00 | - | 3.00 | |
| 2008 | 10 Dec. | 2.00 | 2.50 | - | 3.00 |
| 12 Nov. | 2.75 | 3.25 | - | 3.75 | |
| 15 Oct.4 | 3.25 | 3.75 | - | 4.25 | |
| 9 Oct.3 | 3.25 | - | - | 4.25 | |
| 8 Oct. | 2.75 | - | - | 4.75 | |
| 9 Jul. | 3.25 | - | 4.25 | 5.25 | |
| 2007 | 13 Jun. | 3.00 | - | 4.00 | 5.00 |
| 14 Mar. | 2.75 | - | 3.75 | 4.75 | |
| 2006 | 13 Dec. | 2.50 | - | 3.50 | 4.50 |
| 11 Oct. | 2.25 | - | 3.25 | 4.25 | |
| 9 Aug. | 2.00 | - | 3.00 | 4.00 | |
| 15 Jun. | 1.75 | - | 2.75 | 3.75 | |
| 8 Mar. | 1.50 | - | 2.50 | 3.50 | |
| 2005 | 6 Dec. | 1.25 | - | 2.25 | 3.25 |
| 2003 | 6 Jun. | 1.00 | - | 2.00 | 3.00 |
| 7 Mar. | 1.50 | - | 2.50 | 3.50 | |
| 2002 | 6 Dec. | 1.75 | - | 2.75 | 3.75 |
| 2001 | 9 Nov. | 2.25 | - | 3.25 | 4.25 |
| 18 Sep. | 2.75 | - | 3.75 | 4.75 | |
| 31 Aug. | 3.25 | - | 4.25 | 5.25 | |
| 11 May | 3.50 | - | 4.50 | 5.50 | |
| 2000 | 6 Oct. | 3.75 | - | 4.75 | 5.75 |
| 1 Sep. | 3.50 | - | 4.50 | 5.50 | |
| 28 Jun.2 | 3.25 | - | 4.25 | 5.25 | |
| 9 Jun. | 3.25 | 4.25 | - | 5.25 | |
| 28 Apr. | 2.75 | 3.75 | - | 4.75 | |
| 17 Mar. | 2.50 | 3.50 | - | 4.50 | |
| 4 Feb. | 2.25 | 3.25 | - | 4.25 | |
| 1999 | 5 Nov. | 2.00 | 3.00 | - | 4.00 |
| 9 Apr. | 1.50 | 2.50 | - | 3.50 | |
| 22 Jan. | 2.00 | 3.00 | - | 4.50 | |
| 4 Jan. 1 | 2.75 | 3.00 | - | 3.25 | |
| 1 Jan. | 2.00 | 3.00 | - | 4.50 | |
| (interest rate levels in percentages per annum) | |||||
Prior to 10 March 2004, changes to the interest rate for main refinancing operations were, as a rule, effective as of the first operation following the date indicated, unless stated otherwise. The change on 18 September 2001 was effective on that same day. From 10 March 2004 onwards, the date refers both to the deposit and marginal lending facilities and to the main refinancing operations (with changes effective from the first main refinancing operation following the Governing Council decision), unless otherwise indicated.
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