Deposit Facility Rate

The deposit facility rate is one of the three interest rates the ECB sets every six weeks as part of its monetary policy. The rate defines the interest banks receive for depositing money with the central bank overnight. Since June 2014, this rate has been negative. The European Central Bank left its deposit facility rate unchanged at -0.4 percent on December 14th 2017. Deposit Interest Rate in the Euro Area averaged 1.28 percent from 1999 until 2017, reaching an all-time high of 3.75 percent in October of 2000 and a record low of -0.40 percent in March of 2016.
As the ECB applies a loose monetary policy with the inflation rate being low and under the target of 20.0%, the deposit facility rate is expected to remain negative and low in 2018. When the ECB decides probably in year 2019 to raise gradually the benchmark interest rate, then the deposit facility rate is expected to change also, reflecting the change in the monetary policy, and most probably will increase.