The European Central Bank sets three key rates: the deposit facility rate (paid on banks' overnight deposits), the main refinancing operations rate (for weekly loans) and the marginal lending facility rate (for overnight borrowing). With ample excess liquidity, the deposit facility rate is the one that steers euro money-market rates.
Three rates, one corridor
The ECB’s Governing Council sets three rates that form a corridor for overnight money in the euro area:
| Rate | What it is | Level on our snapshot |
|---|---|---|
| Marginal lending facility (MLF) | What banks pay to borrow overnight from the Eurosystem against collateral; the ceiling | 2.90% |
| Main refinancing operations (MRO) | Fixed rate on the ECB’s regular one-week loans | 2.65% |
| Deposit facility rate (DFR) | What banks earn on overnight deposits at the Eurosystem; the floor | 2.50% |
All three took effect on 16 September 2026 according to the ECB Data Portal series in our committed snapshot. The live levels and full history are on the ECB interest rates page.
Why the deposit rate is the one that matters now
Before 2008, banks borrowed from the ECB every week and the MRO rate set the tone. After years of crisis lending and asset purchases, the banking system holds far more reserves than it needs. When banks have surplus cash, the marginal euro is parked at the deposit facility, so the deposit facility rate becomes the effective floor under money-market rates such as €STR.
In March 2024 the ECB confirmed it would keep steering policy through the deposit facility rate and narrowed the spread between the MRO and DFR from 50 to 15 basis points, effective 18 September 2024, to make borrowing from the ECB cheaper as excess liquidity declines. The levels above fit that design: 2.65% − 2.50% = 0.15 point, and the MLF sits 25 basis points above the MRO.
A short history in the data
Our snapshot holds every change in the deposit rate since 2019:
- −0.50% from September 2019, the bottom of the negative-rate era.
- 0.00% in July 2022, the first hike in eleven years, ending negative rates.
- 4.00% in September 2023, the peak of the tightening cycle.
- Cuts from June 2024 brought it down to 2.00% by June 2025.
- Increases on 17 June 2026 (to 2.25%) and 16 September 2026 (to 2.50%).
The chart on the indicator page draws these steps from the ECB series itself.
How a decision is made
The Governing Council (the six Executive Board members plus the governors of the euro area national central banks) holds a monetary policy meeting about every six weeks. Governors vote under a monthly rotation system; Executive Board members always vote. The decision is published at 14:15 CET, the President’s press conference starts at 14:45 CET, and an account of the meeting follows about four weeks later.
The ECB’s target is 2% HICP inflation over the medium term, symmetric, so deviations in both directions are considered equally undesirable. The latest euro area HICP reading on our snapshot was 3.8% for September 2026 (Eurostat); see HICP vs CPI for what that index includes.
ECB vs Fed: the quick comparison
| ECB | Federal Reserve | |
|---|---|---|
| Policy rate quoted | Deposit facility rate (a single level) | Federal funds target range (25 bp wide) |
| Mandate | Price stability first | Maximum employment and stable prices |
| Inflation measure | HICP | PCE price index |
| Meetings | About every six weeks | Eight scheduled per year |
| Decision time | 14:15 CET | 2:00 p.m. ET |
More on the U.S. side in how the FOMC sets rates.
How changes reach households
Euro area loans are more often tied to short-term rates than U.S. mortgages, so ECB moves pass through to variable-rate borrowers relatively quickly in countries such as Spain and Italy, typically via Euribor. Deposit rates offered to savers tend to adjust more slowly and by less.
Bottom line
When someone says “the ECB rate”, they almost always mean the deposit facility rate. Check the effective date, compare it with the 2% HICP target, and remember that the other two rates are set relative to it under the post-2024 framework.
Frequently asked questions
- Which ECB rate do news reports mean?
- Since the ECB began steering through the deposit facility rate, most reports quote the deposit rate. Older coverage often quoted the main refinancing rate.
- How often does the ECB decide on rates?
- The Governing Council holds monetary policy meetings about every six weeks, eight times a year. Decisions are published at 14:15 CET, followed by a press conference at 14:45 CET.
- Why is the gap between the deposit rate and the refinancing rate 15 basis points?
- In March 2024 the ECB narrowed the spread from 50 to 15 basis points, effective 18 September 2024, as part of its operational framework review.