Interest rate remains stable

The Dutch long-term interest rate based on the return of the most recent ten-year public loan averaged 2.0 percent in July 2013, just as in July.

The European Central Bank (ECB) changed various interest rates in May 2013.The most important ECB rate, the repo rate, was lowered by 0.25 of a percentage point to 0.50 percent, effective from 8 May 2013.The deposit rate, often considered as the bottom rate of the financial market, remained unchanged at 0.00 percent.

One of the main guidelines for the ECB’s decision to change or refrain from changing the interest rate is the level of inflation in the eurozone. According to the ECB, eurozone prices are stable, if the inflation rate is close to 2 percent. Eurostat, the statistical office of the European Union, recorded an inflation rate of 1.6 percent in the eurozone in July. Inflation in June was also 1.6 percent.

Capital market interest rate (latest ten-year public loan)

Capital market interest rate (latest ten-year public loan)

For more information on economic indicators, the reader is referred to the Economic Monitor.