What is the deposit facility rate?

10 March 2016 (updated on 21 October 2022)

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.

There are two other key interest rates: the rate for our main refinancing operations (MROs) and the rate on the marginal lending facility. The MRO rate defines the cost at which banks can borrow from the central bank for a period of one week. If banks need money overnight, they can borrow from the marginal lending facility at a higher rate.