# Base interest rate

- Canonical URL: https://www.gerhardmerk.de/base-interest-rate
- Post ID: 593683
- Modified: 2023-07-25T20:58:31+00:00
- Language: en

## Definition

Defined in Germany in the "Gesetz zur Änderung von Vorschriften über die Bewertung von Kapitalanlagen von Versicherungsunternehmen und zur Aufhebung des Diskontsatz-Überleitungs-Gesetzes (Versicherungskapitalanlagen-Bewertungsgesetz, VersKapAG)" (Act Amending Provisions on the Valuation of Investments of Insurance Companies and Repealing the Discount Rate Transition Act, VersKapAG) of March 26, 2002. - The Deutsche Bundesbank calculates the base interest rate in accordance with the statutory requirements of Section 247, Paragraph 1 of the German Civil Code (BGB) and publishes its current level in the German Federal Gazette (Bundesanzeiger) in accordance with Section 247, Paragraph 2 of the BGB. - The base interest rate of the German Civil Code serves primarily as the basis for calculating interest on arrears, see Section 288, Paragraph 1, Sentence 2 of the German Civil Code. It changes on January 1 and July 1 of each year by the amount by which its reference variable has risen or fallen since the last change in the prime rate. The reference variable is the interest rate for the most recent main refinancing operation of the European Central Bank prior to the first calendar day of the half-year in question. For example, the fixed interest rate for the ECB's last main refinancing operation was exactly 2.50 percent on December 30, 2008. It has fallen by 1.57 percent since the relevant date for the last change in the prime rate, July 1, 2008 (the marginal interest rate for the last main refinancing operation [variable rate tender] in June 2008 had been 4.07 percent). This then resulted in a BGB prime rate of 1.62 percent as of January 1, 2009 (previously 3.19 percent). - For more information, see the Deutsche Bundesbank's website (). - See discount, prime rate, prime rate, stealth policy. Transmission mechanism, monetary, interest rate pass-through. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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