Inhaltsverzeichnis
What’s the base rate?
The basic interest rate is an interest rate that can be changed in Germany and Austria and is used to value capital services. It is recalculated twice a year by the Deutsche Bundesbank at the beginning of the half-year. The Deutsche Bundesbank bases its calculation on the specifications of the European Central Bank (ECB). After calculation, the base rate is officially announced. As a result, the base rate also becomes the official market interest rate.
As the valuation interest rate, the base interest rate forms the basis for calculating the default interest rate.
The interest on arrears is usually required for payment actions for court rulings. Article 3(1)(d) of the EU Directive 2000/35/EC implements the provisions on the base rate to combat late payment in commercial transactions.
The level of the base rate in Germany
The base rate is variable and has been calculated semi-annually by the Deutsche Bundesbank since 1 January 2002 in accordance with § 247 of the German Civil Code (BGB). In preparation for its introduction, it was fixed on 1 September 2001 according to the base rate applicable at the time (in accordance with the Discount Rate Transition Act) and since then has always changed on 1 January and 1 July by the percentage points by which the reference value of the base rate has changed since the last calculation. The value of the base rate is always 88 basis points below the reference value, i.e. 0.88 % below this reference value.
Reference value of the base rate
The reference value for the base rate shall be the ECB’s most recent main refinancing operation prior to the first calendar day of each half-year. The base interest rate was changed for the first time on January 1, 2002. Immediately after the first calendar days of the respective half-year, namely on 1 January and 1 July, the Deutsche Bundesbank must announce the new base interest rate independently of the weekday. Since January 1, 2013 is this by the way negative.
Importance of the base rate in civil law
The basic interest rate is particularly important for the calculation of interest on arrears, the interest rate for determining costs, and for notary costs.
Origin of the base interest rate
The basic interest rate was introduced following the transfer of monetary policy competence to the ECB on 1 January 1999 and the abolition of the discount rate. Until that date, legal texts, contracts and laws frequently referred to this discount rate, which the Deutsche Bundesbank had established. Today, the Deutsche Bundesbank only publishes the base rate immediately and calculates the rate beforehand.
With the Act to Modernise the Law of Obligations, the base rate was finally incorporated into the German Civil Code on 1 January 2002 for quite a few areas.
Base rate in Austria
In Austria there are some differences to the calculation of the base rate in Germany. The Austrian National Bank is responsible for calculating the rate here and publishes the rate on its website immediately after it has been calculated. The time of publication is thus about the same as in Germany. The biggest difference, however, lies in the calculation method. Although Austria and Germany belong to the same currency area, the base interest rate is different for this reason. The main reason for this is that the minimum change in the ECB’s refinancing rate must be 0.5 percentage point. Only then is the base rate changed at all. As a result, changes in the base rate in Austria are also much less frequent.