Fluctuation of the ECB interest rate on marginal lending facilities 2008-2024
The European Central Bank (ECB) interest rate on marginal lending facility was decreased by 0.25 basis points in June 2024, marking the first cut since 2016. The rate 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 increased regularly. As of April 2024, the rate was 4.75 percent.
The marginal lending facility is a monetary policy instrument of the euro system that 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 in the euro system.