Euro Short-Term Rate (ESTR)

The Euro Short-Term Rate (ESTR) is a benchmark interest rate that reflects the average cost for banks to borrow overnight funds within the Eurozone's unsecured lending market. It serves as a reference for financial contracts, such as loans and derivatives, providing a transparent and reliable indicator of short-term borrowing conditions among banks. Managed by the European Central Bank, ESTR helps ensure stability and transparency in financial markets by offering a consistent measure of the risk-free borrowing rate for euros on a daily basis.