Germany Long Term Interest Rate Monthly Analysis: ECB Long Term Interest Rates (2024)

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Germany Long Term Interest Rate Monthly Analysis: ECB Long Term Interest Rates? ›

Germany Long Term Interest Rate is at 2.21%, compared to 2.46% last month and 2.54% last year. This is lower than the long term average of 3.08%. The Germany Long Term Interest Rate is the yield received for investing in a German government issued bond with a maturity at or close to 10 years.

Germany Long Term Interest Rate: Month Avg: Germany: ECB Harmonised was reported at 2.46 % pa in Jul 2024, compared with 2.48 % pa in the previous month. Germany Long Term Interest Rate data is updated monthly, available from Jan 1993 to Jul 2024.

Bank Lending Rate in Germany is expected to be 5.57 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Germany Bank Lending Rate is projected to trend around 4.32 percent in 2025, according to our econometric models.

Three months later, the ECB introduced an additional rate cut, lowering the fixed interest rate to 3.65 percent. These reductions followed a prolonged period of rate hikes: in July 2022, the ECB raised its fixed interest rate to 0.5 percent, the first increase since March 2016.

Beginning on 1 July 2024, this amounts to a basic rate of interest of 3.37% pursuant to the German Civil Code (previously 3.62%). The new basic rate of interest will be announced in the Federal Gazette of 26 June 2024.

Germany cash rate (Policy Rate: Month End: Main Refinancing Operations) was set at 4.25 % pa in Aug 2024, compared with 4.25 % pa in the previous Jul 2024. Germany Policy Rate averaged 1.25 % pa and is updated monthly, available from Jan 1999 to Aug 2024.

The Germany 10 Years Government Bond Yield is expected to be 1.669% by the end of December 2024. Video Player is loading. It would mean a decrease of 45.7 bp, if compared to last quotation (2.1255%, last update 12 Sep 2024 8:15 GMT+0).

Germany Real Interest Rate is at 4.34%, compared to 3.05% last year.

The inflation rate in Germany, measured as the year-on-year change in the consumer price index (CPI), stood at +1.9% in August 2024. The last time inflation was below two percent was just over three years ago (March 2021: +1.8%). The rate of change was +2.3% in July 2024 and +2.2% in June 2024.

What is the interest rate forecast for ECB in 2024? ›

The ECB is expected to cut borrowing costs by 25bps in its September 2024 meeting, a second reduction this year, after a similar move in June, followed by a pause in July. That would bring the deposit facility rate to 3.5%.

Respondents expected the ECB's MRO rate to fall to 4.0% in the third quarter of 2024 before falling further to 3.5% by the year-end, 3.0% by the second quarter of 2025 and 2.5% in 2026.

Key information about Germany Bank Lending Rate

Germany Bank Lending Rate was reported at 5.566 % pa in Jul 2024. This records a decrease from the previous number of 5.587 % pa for Jun 2024. Germany Bank Lending Rate data is updated monthly, averaging 3.297 % pa from Jan 2003 to Jul 2024, with 259 observations.

Five-to-ten-year mortgage loans had the lowest rates in October 2023 at 3.85 percent, while floating rate mortgages up to one year were the most expensive at 5.53 percent. Mortgages with over 10-year fixed period – the most popular loan type among homebuyers - had an interest rate of 3.9 percent.