Interest rate unchanged

04/07/2006 13:00

The Dutch long-term interest rate, based on the return of the latest ten-year government loan, averaged 4,0 percent in June, the same as in May. The interest rate is climbing since September 2005, when the lowest level for a long time was reached.

The European Central Bank (ECB) raised its interest rates three times in a six month period with 0.25 of a percent point. Since 15 June 2006 the ECB deposit rate is 1.75 percent. The deposit rate is often considered as the bottom rate on the interest. The main ECB interest rate, the repo rate, is 2.75 percent since 15 June.

One of the main directives for the ECB’s decision to change or refrain from changing the interest level is the inflation level in the eurozone. The ECB aims a medium term inflation in the eurozone at approximately 2 percent. According to Eurostat, the statistical office of the European Union, it averaged 2.5 percent in June. In May inflation in the eurozone was 2.5 percent too.

Capital market interest rate (latest ten-year government bond)

Capital market interest rate (latest ten-year government bond)