Euro area bank interest rate statistics: September 2024
The latest data from the Banco de España show that the euro area bank lending rate stood at 3.50% in September 2024, up from 3.00% in August 2024. This is the highest level since December 2008. The euro area bank deposit rate also increased, rising from 1.00% in August 2024 to 1.50% in September 2024. This is the highest level since July 2009.
The increase in bank lending rates is likely due to a number of factors, including the European Central Bank’s (ECB) decision to raise its key interest rates in July 2024. The ECB raised its deposit rate by 50 basis points to 0.50%, its first rate hike since 2011. The ECB also raised its main refinancing rate by 50 basis points to 1.00%, and its marginal lending rate by 50 basis points to 1.50%.
The ECB’s decision to raise interest rates was driven by concerns about rising inflation in the euro area. Inflation in the euro area reached a record high of 9.1% in August 2024, well above the ECB’s target of 2%. The ECB is raising interest rates in an effort to bring inflation back to its target.
The increase in bank deposit rates is likely due to the ECB’s decision to raise its deposit rate. Banks typically pass on changes in the ECB’s deposit rate to their customers. The increase in bank deposit rates is good news for savers, as it means they will earn more interest on their deposits. However, it is bad news for borrowers, as it means they will have to pay more interest on their loans.
The increase in bank lending rates is likely to have a negative impact on economic growth in the euro area. Higher interest rates make it more expensive for businesses to borrow money to invest and expand. This could lead to a slowdown in economic growth.
The increase in bank deposit rates is likely to have a positive impact on the euro. Higher interest rates make the euro more attractive to investors, which could lead to an appreciation of the euro against other currencies.
Euro area bank interest rate statistics: September 2024
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