Financial Terms Glossary
The most important financial terms - with simple and concise explanations.
€STR (Euro Short-Term Rate)
The €STR (Euro Short-Term Rate) is a benchmark interest rate published by the European Central Bank (ECB) that measures the cost at which banks in the eurozone can borrow unsecured funds overnight from other financial institutions. It is based on actual transactions and offers a transparent reflection of wholesale euro unsecured overnight borrowing costs. €STR is published daily, offering a current indicator of the average interest rate level in the interbank market. This benchmark rate plays a crucial role in the pricing of various financial instruments, such as overnight deposit products, swaps, or floating rate bonds.
