Interest rate slightly up in October

17/11/2005 13:00

Dutch long-term interest rate, in relation to the return of the latest  ten-year period government loan, averaged 3.3 percent in October 2005. That is 0.2 percent point higher than in September. By this the interest rate in October is back on the level of July and August 2005.

The European Central Bank (ECB) did not adjust its interest rates in October 2005. The ECB last adjusted its interest rates in June 2003, raising them by 0.5 of a percent point. The lowest rate on the market is the ECB deposit rate which has been by 1.00 percent since June 2003. The main ECB interest rate, the repo rate, has been 2.00 percent since June 2003.

A major guideline for the ECB in determining its interest rate is the inflation rate in the eurozone. In the last couple of years inflation, with a dip in February 2004 of 1.6, fluctuates around 2.1 percent. According to the Statistical office of the European Union (Eurostat) the inflation in the eurozone in October was 2.5 percent on average. This is 0.1 percent point down on September.

Capital market interest rate (latest ten-year period government loan)

Capital market interest rate (latest ten-year period government loan)