ECB Cuts Rates by 25 bps as Expected
London, 18 October 2024
As anticipated, the ECB dropped its three main interest rates by 25 basis points in October 2024, following up on its September and June rate reductions.
The rates for the marginal loan facility, primary refinance operations, and deposit facility will now be 3.65%, 3.25%, and 3.40%, respectively. This conclusion is based on an updated inflation assessment that indicates disinflation is proceeding smoothly. For the first time in over three years, Eurozone inflation dropped below the ECB's 2% objective in September.
Short-term inflation is predicted to increase, but by 2025, it should be closer to the 2% target. Although pressures are lessening, wage growth is still high. Without committing to a particular rate path, the ECB is still committed to utilising a flexible, data-driven strategy with restrictive rates to make sure inflation meets its medium-term target.
Stats
The benchmark interest rate The most recent figure in the Euro Area was 3.40 percent. From 1998 to 2024, the Euro Area's interest rate averaged 1.85 percent; it peaked at 4.75 percent in October 2000 and fell to a record low of 0.00 percent in March 2016. Actual numbers, historical data, forecasts, charts, statistics, an economic calendar, and news are all available on this page for the Euro Area Interest Rate. The most recent update to the Euro Area Interest Rate statistics, historical chart, projections, and release timetable was made in October 2024.
Forecast
The benchmark interest rate, the most recent figure in the Euro Area, was 3.40 percent. By the conclusion of this quarter, analysts and Trading Economics global macro models predict that the interest rate in the Euro Area will be 3.40 percent. Based on Trading Economics econometric models, the Euro Area Interest Rate is expected to trend at 2.40 percent in 2025. (Source: Trading Economics)
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