Interest rate slightly up

The Dutch long-term interest rate, based on the return of the latest ten-year government loan, averaged 4.6 percent in June. This is 0.3 of a percentage point up on May this year. The long-term interest rate stands at its highest level since August 2002.

The European Central Bank (ECB) has raised its interest rates by 0.25 of a percent point eight times in the space of eighteen months. From 13 June 2007 the ECB deposit rate is 3.0 percent. The deposit rate is often considered as the bottom rate on the interest market. The main ECB interest rate, the repo rate, is 4.0 percent from 13 June.

One of the main directives for the ECB’s decision to change or refrain from changing the interest rate is the inflation level in the eurozone. The ECB aims at a medium-term inflation in the eurozone of approximately 2 percent. According to Eurostat, the statistical office of the European Union, it averaged 1.9 percent in June. This equals the average in May.

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