The Dutch long-term interest rate based on the return of the most recent ten-year public loan averaged 1.6 percent in June 2014. In May the interest rate was 1.7 percent.
In June 2014, the European Central Bank (ECB) will change various interest rates. The most important ECB rate, the repo rate, will be lowered by 0.10 percentage points to 0.15 percent, effective from 11 June 2014. The deposit rate, often considered as the bottom rate of the financial market, will also be lowered by 0.10 percentage points to reach -0.10 percent with effect from 11 June 2014.
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 below, but close to, 2 percent. Eurostat, the statistical office of the European Union, recorded an inflation rate of 0.5 percent in the eurozone in June.
Capital market interest rate (latest ten-year public loan)
For more information on economic indicators, the reader is referred to the Economic Monitor.