Interest rate unchanged

18/08/2006 12:08

The Dutch long-term interest rate, based on the return of the latest ten-year government loan, averaged 4,0 percent in July, the same as in May and June.

The European Central Bank (ECB) raised its interest rates four times in a year with 0.25 of a percent point. Since 9 August 2006 the ECB deposit rate is 2.0 percent. The deposit rate is often considered as the bottom rate on the interest. The main ECB interest rate, the repo rate, is 3.0 percent since 9 August.

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 2.4 percent in July. In June inflation in the eurozone was 2.5 percent.

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

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