Euro Area EUR

Euro Area Deposit Facility Rate

Info

History

Chart

Impact:

High

Source: European Central Bank

Latest Release:

Date:

Actual:

Forecast: 2%

Previous/Revision:

2.25%

Period:

Next Release:

Date:

Forecast: 2%

Period:

What Does It Measure?

The Euro Area Deposit Facility Rate measures the interest rate at which banks can deposit their excess reserves overnight with the European Central Bank (ECB). This indicator primarily assesses the monetary policy stance of the ECB, impacting liquidity in the banking system and influencing short-term interest rates across the Eurozone.

Frequency

The Deposit Facility Rate is reviewed and potentially adjusted by the ECB during its monetary policy meetings, which typically occur every six weeks, with the decision announced along with accompanying statements.

Why Do Traders Care?

Traders closely monitor the Deposit Facility Rate as it directly influences liquidity conditions and borrowing costs across the Eurozone, impacting various financial assets such as the euro, equities, and bonds. Changes or expectations around this rate can lead to significant shifts in market sentiment and financial forecasts, making it a crucial indicator for economic decision-making.

What Is It Derived From?

The Deposit Facility Rate is derived from decisions made during ECB monetary policy meetings, reflecting the central bank's assessment of the economic environment, inflation outlook, and financial stability considerations. The rate is determined by a consensus among ECB policymakers based on comprehensive economic data, including employment, inflation rates, and growth forecasts.

Description

The Deposit Facility Rate serves as a benchmark for short-term interest rates and influences other rates in the economy, including lending rates for consumers and businesses. It is crucial for determining the cost of borrowing, and its adjustments can signal a shift in monetary policy direction, which is interpreted by markets as either hawkish or dovish.

Additional Notes

The Deposit Facility Rate is a primary tool of the ECB's monetary policy and can signal future economic trends in the Euro area; it is often considered a lagging indicator due to its reactive nature to economic developments. Comparatively, it can be related to other indicators such as the main refinancing operations rate and the marginal lending facility rate, providing insights into the overall stance of Eurozone monetary policy.

Bullish or Bearish for Currency and Stocks

If the Deposit Facility Rate is lower than expected, it could be classified as bearish for the euro but bullish for stocks due to cheaper borrowing costs encouraging investment. A dovish tone from the ECB indicating lower interest rates typically supports equity markets by fostering an environment conducive to growth, yet it may weaken the currency as interest rate differentials shift.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Actual	Forecast	Previous	Surprise
Jun 05, 2025	2%	2%	2.25%
Apr 17, 2025	2.25%	2.25%	2.5%
Mar 06, 2025	2.5%	2.5%	2.75%
Jan 30, 2025	2.75%	2.75%	3%
Dec 12, 2024	3%	3%	3.25%
Oct 17, 2024	3.25%	3.25%	3.5%
Sep 12, 2024	3.5%	3.5%	3.75%
Jul 18, 2024	3.75%	3.75%	3.75%
Jun 06, 2024	3.75%	3.75%	4%
May 03, 2024
Apr 11, 2024	4%	4%	4%
Mar 07, 2024	4%	4%	4%
Jan 25, 2024	4%	4%	4%
Dec 14, 2023	4%	4%	4%
Oct 26, 2023	4%	4%	4%
Sep 14, 2023	4%	3.75%	3.75%	0.25%
Jul 27, 2023	3.75%	3.75%	3.5%
Jun 15, 2023	3.5%	3.5%	3.25%
May 04, 2023	3.25%	3.25%	3%
Mar 16, 2023	3%	3%	2.5%
Feb 02, 2023	2.5%	2.5%	2%
Dec 15, 2022	2%	2%	1.5%
Oct 27, 2022	1.5%	1.5%	0.75%
Sep 08, 2022	0.75%	0.5%	0%	0.25%
Jul 21, 2022	0%	-0.25%	-0.5%	0.25%
Jun 09, 2022	-0.5%	-0.5%	-0.5%
Apr 14, 2022	-0.5%	-0.5%	-0.5%
Mar 10, 2022	-0.5%	-0.5%	-0.5%
Feb 03, 2022	-0.5%	-0.5%	-0.5%
Dec 16, 2021	-0.5%	-0.5%	-0.5%
Oct 28, 2021	-0.5%	-0.5%	-0.5%
Sep 09, 2021	-0.5%	-0.5%	-0.5%
Jul 22, 2021	-0.5%	-0.5%	-0.5%
Jun 10, 2021	-0.5%	-0.5%	-0.5%
Apr 22, 2021	-0.5%	-0.5%	-0.5%
Mar 11, 2021	-0.5%	-0.5%	-0.5%
Jan 21, 2021	-0.5%	-0.5%	-0.5%
Dec 10, 2020	-0.5%	-0.5%	-0.5%
Oct 29, 2020	-0.5%	-0.5%	-0.5%
Sep 10, 2020	-0.5%	-0.5%	-0.5%
Jul 16, 2020	-0.5%	-0.5%	-0.5%
Jun 04, 2020	-0.5%	-0.5%	-0.5%
Apr 30, 2020	-0.5%	-0.5%	-0.5%
Mar 12, 2020	-0.5%	-0.6%	-0.5%	0.1%
Jan 23, 2020	-0.5%	-0.5%	-0.5%
Dec 12, 2019	-0.5%	-0.5%	-0.5%
Oct 24, 2019	-0.5%	-0.5%	-0.5%
Sep 12, 2019	-0.5%	-0.5%	-0.4%
Jul 25, 2019	-0.4%	-0.4%	-0.4%
Jun 06, 2019	-0.4%	-0.4%	-0.4%
Apr 10, 2019	-0.4%	-0.4%	-0.4%
Mar 07, 2019	-0.4%	-0.4%	-0.4%
Jan 24, 2019	-0.4%	-0.4%	-0.4%
Dec 13, 2018	-0.4%	-0.4%	-0.4%
Oct 25, 2018	-0.4%	-0.4%	-0.4%
Sep 13, 2018	-0.4%	-0.4%	-0.4%
Jul 26, 2018	-0.4%	-0.4%	-0.4%
Jun 14, 2018	-0.4%	-0.4%	-0.4%
Apr 26, 2018	-0.4%	-0.4%	-0.4%
Mar 08, 2018	-0.4%	-0.4%	-0.4%
Jan 25, 2018	-0.4%	-0.4%	-0.4%