The European Central Bank (ECB) has announced a decision that will enhance the robustness and representativeness of its reference rate. This measure will be realized by incorporating data from a greater volume of transactions and an expanded number of banks.
The newly added banks had begun reporting from July 1, 2024, for the compilation of money market statistics, but were not included in the EuroSTR calculation.
As the administrator of the EuroSTR reference interest rate, the ECB opted to wait until it could confirm sufficient quality in the data provided.
The ECB expects the impact on the rate to be minimal, as the average difference observed during the test period since July 2024 was just -0.2 basis points.
Introduced in October 2019, the EuroSTR (Euro Short Term Rate) reflects the cost of unsecured overnight wholesale borrowing by Eurozone banks.
