ECB reports continued decline in euro area excess liquidity, rates stable
The Eurosystem's excess liquidity in the euro area banking system continued its gradual decline from July to November 2025. The European Central Bank's Governing Council maintained its three key interest rates unchanged during this period.
Liquidity provision decreases due to APP/PEPP
Excess liquidity in the euro area banking system continued to decline gradually from 30 July to 4 November 2025.
This decrease was primarily driven by lower Eurosystem holdings under the asset purchase programme (APP) and pandemic emergency purchasing programme (PEPP), following the discontinuation of APP reinvestments in July 2023 and PEPP reinvestments at the end of December 2024.
The average amount of liquidity provided through outright monetary policy portfolio holdings went down by €125 billion to €3,881 billion over the review period.
This decline was due to maturing APP and PEPP holdings not being reinvested.
The average amount of liquidity provided through credit operations also fell by €3 billion to €21 billion, reflecting banks' comfortable liquidity position and alternative funding sources.
Autonomous factors offset some liquidity decline
The overall decline in liquidity was partly offset by a reduction in liquidity absorption from net autonomous factors.
Liquidity-providing autonomous factors rose by €28 billion, largely due to an increase in net euro-denominated assets.
Concurrently, liquidity-absorbing autonomous factors decreased by €3 billion.
During this period, the Governing Council maintained its three key ECB interest rates unchanged.
The deposit facility rate remained at 2.00%, main refinancing operations (MROs) at 2.15%, and the marginal lending facility at 2.40%.
The average euro short-term rate (€STR) marginally increased, maintaining a negative spread relative to the deposit facility rate.