Fluctuation of the ECB interest rate on marginal lending facilities 2008-2022
The European Central Bank (ECB) interest rate on marginal lending facility was changed from 0.3 percent to 0.25 percent on March 16, 2016 and has remained unchanged until July 2022, when it increased to 0.75 percent. After September 2022, the rate was increased further on a regular basis. As of June 2023, the rate was 4.25 percent.
The marginal lending facility is a monetary policy instrument of the euro system which offers commercial banks the opportunity to procure, against eligible collateral and at a specified interest rate for one business day, liquidity (overnight loans) from the ECB. This permanent facility is intended to meet temporary,very short-term liquidity needs, and normally provides a ceiling for the bank call rate on the money market. The interest rate on the marginal lending facility is thus one of the key rates of the euro system.
The marginal lending facility is a monetary policy instrument of the euro system which offers commercial banks the opportunity to procure, against eligible collateral and at a specified interest rate for one business day, liquidity (overnight loans) from the ECB. This permanent facility is intended to meet temporary,very short-term liquidity needs, and normally provides a ceiling for the bank call rate on the money market. The interest rate on the marginal lending facility is thus one of the key rates of the euro system.
