Interest rates

What it is

This is the rate a central bank pays or charges banks. For the euro area it is the ECB's deposit facility rate; for the US it is the top of the Federal Reserve's target range. Banks pass it on, so it shapes what you earn on savings and pay on a mortgage or loan.

Why it matters

When inflation runs high, central banks usually raise rates to cool spending. When the economy is weak, they usually cut them. Changes ripple through mortgages, company borrowing, bond prices, currencies and share prices, which is why a rate decision is big news.

What moves it

Decisions are taken at scheduled meetings, about eight a year, based mainly on inflation, jobs and growth. Between meetings the rate does not change, which is why the line moves in steps.

Where the numbers come from

ECB Data Portal. Updated automatically every day; official figures are sometimes revised after first release. All sources and their terms.