Reference rates have an important role to play for the financial markets. A lot of financial instruments - deposits, loans and derived products - use these rates. Besides, reference rates ensure standardisation and therefore better liquidity of financial products concerned as well. It is not just professional market participants that make use of reference rates. For instance, consumers who choose or who have already opted for a variable-rate mortgage are affected by reference rates because the periodic adjustments of their home loan follow variations in the reference interest rate.

The most widely used European reference rates at the moment are EONIA and EURIBOR. EONIA is being phased out over time and is replaced by the euro short-term rate, €STR, as of now.

See the ECB’s website for more information.