European Central Bank Key Interest Rate 2025 March: Decreased Key Deposit Interest Rate by 0.25% from 2.75% to 2.5% Effective 12th March 2025, Main Refinancing Rate Reduced to 2.65% & Marginal Lending Facility Reduced to 2.9%
8th March 2025 | Hong Kong
European Central Bank (ECB) Key Interest Rate 2025 March – The ECB decreased key Deposit interest rate by 0.25% from 2.75% to 2.5% effective 12th March 2025, Main Refinancing rate reduced to 2.65% & Marginal Lending Facility reduced to 2.9%. ECB (6/3/25): “The Governing Council today decided to lower the three key ECB interest rates by 25 basis points. Accordingly, the interest rates on the deposit facility, the main refinancing operations and the marginal lending facility will be decreased to 2.50%, 2.65% and 2.90% respectively, with effect from 12 March 2025 …. …. The Governing Council today decided to lower the three key ECB interest rates by 25 basis points. In particular, the decision to lower the deposit facility rate – the rate through which the Governing Council steers the monetary policy stance – is based on its updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission. The disinflation process is well on track. Inflation has continued to develop broadly as staff expected, and the latest projections closely align with the previous inflation outlook. Staff now see headline inflation averaging 2.3% in 2025, 1.9% in 2026 and 2.0% in 2027. The upward revision in headline inflation for 2025 reflects stronger energy price dynamics. For inflation excluding energy and food, staff project an average of 2.2% in 2025, 2.0% in 2026 and 1.9% in 2027. Most measures of underlying inflation suggest that inflation will settle at around the Governing Council’s 2% medium-term target on a sustained basis. Domestic inflation remains high, mostly because wages and prices in certain sectors are still adjusting to the past inflation surge with a substantial delay. But wage growth is moderating as expected, and profits are partially buffering the impact on inflation. Monetary policy is becoming meaningfully less restrictive, as the interest rate cuts are making new borrowing less expensive for firms and households and loan growth is picking up. At the same time, a headwind to the easing of financing conditions comes from past interest rate hikes still transmitting to the stock of credit, and lending remains subdued overall. The economy faces continued challenges and staff have again marked down their growth projections – to 0.9% for 2025, 1.2% for 2026 and 1.3% for 2027. The downward revisions for 2025 and 2026 reflect lower exports and ongoing weakness in investment, in part originating from high trade policy uncertainty as well as broader policy uncertainty. Rising real incomes and the gradually fading effects of past rate hikes remain the key drivers underpinning the expected pick-up in demand over time. The Governing Council is determined to ensure that inflation stabilises sustainably at its 2% medium-term target. Especially in current conditions of rising uncertainty, it will follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance. In particular, the Governing Council’s interest rate decisions will be based on its assessment of the inflation outlook in light of the incoming economic and financial data, the dynamics of underlying inflation and the strength of monetary policy transmission. The Governing Council is not pre-committing to a particular rate path.”
“ European Central Bank Key Interest Rate 2025 March: Decreased Key Deposit Interest Rate by 0.25% from 2.75% to 2.5% Effective 12th March 2025, Main Refinancing Rate Reduced to 2.65% & Marginal Lending Facility Reduced to 2.9% “
European Central Bank Key Interest Rate 2025 March: Decreased Key Deposit Interest Rate by 0.25% from 2.75% to 2.5% Effective 12th March 2025, Main Refinancing Rate Reduced to 2.65% & Marginal Lending Facility Reduced to 2.9%

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