The Bundesbank’s base interest rate is positive again after ten years
NAfter ten years, the German base interest rate turned positive again at the beginning of the year. the Federal Bank increases the value to January 1 to 1.62 percent, as announced on Tuesday. The reason for this is the rate hikes by the European Central Bank in recent months to combat inflation.
The Bundesbank calculates the base interest rate on January 1st and July 1st of each year according to a legally defined key. It has been negative since 2013 and was -0.88 percent since July 2016. The rate for 2023 last applied in the first half of 2009.
The interest rate serves in particular as a basis for calculating interest on arrears in court. The German Civil Code stipulates an interest rate of 5 points above the base rate. For inter-company debt, it’s 9 points higher.
