CONVEX
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▍ STATISTICAL PROJECTION · YEAR-END 2025

Based on current macro regime conditions and ecb marginal lending rate's historical behaviour in similar regimes, the model projects 2.36% by 2025-12-31 ( -1.8% from 2.40% today). The 68% confidence range is 1.12% to 3.60%; the wider 95% range is -0.07% to 4.78%. Methodology below the headline.

Central Estimate
2.36%
-1.8% vs current 2.40%
68% Range (±1σ)
1.12% to 3.60%
95% Range (±1.96σ)
-0.07% to 4.78%
Central estimate uses the unconditional 25-year historical average because current regime buckets had insufficient observations to produce a reliable blend.
METHOD: CENTRAL = SAMPLE-WEIGHTED MEAN OF PER-ANCHOR CURRENT-REGIME 1Y AVERAGES, SCALED TO 140-DAY HORIZON. BAND = ±σ√T USING 69.2% ANNUALIZED REALIZED VOL.
EXPECTED TO BE 2.36% BY 2025-12-31 (LOWER FROM 2.40% ON 2025-06-11). NOT INVESTMENT ADVICE.
▍ MODEL · STATISTICAL FORECAST · 2026

ECB Marginal Lending Rate Forecast 2026

Quantitative analysis from 54 observations of ECB Marginal Lending Rate history, joined to four universal macro regime classifications. Numbers are computed, not narrated.

ByConvex Research Desk·Edited byBen Bleier·
ECB-MARGINAL-LENDING · LAST
2.40%
AS OF 2025-06-11
Percentile · 25Y History
31.5th

Performance by Window[02]

WINDOWNANN RETANN VOLRET/VOLHIT %TOTAL
1Y8-46.78%4.69%-9.980.0%-46.67%
3Y1849.87%56.31%0.8952.9%220.00%
5Y1849.87%56.31%0.8952.9%220.00%
10Y2124.45%101.04%0.2450.0%700.00%
All54-3.24%69.22%-0.0539.6%-54.29%

Annualized total return = (1 + total)^(1/years) - 1. Ret/Vol is the annualized return divided by annualized volatility (Sharpe-equivalent without risk-free subtraction). Hit % = pct of single periods that were positive.

Where We Are Now[03]

Percentile Rank
31.5th
0.25median 3.255.25
Current value 2.4000 on a 54-observation history going back to Mar 16, 2016.

Worst Historical Drawdown[07]

-95.24%PEAK-TO-TROUGH
Peak Aug 31, 2001 → trough Mar 16, 2016. Has not yet recovered to prior peak.
All-time high: 5.2500 on Aug 31, 2001 · Current DD from ATH: -54.29%

Largest Single-Period Moves[09]

▲ Up
  • Jul 27, 2022200.00%
  • Sep 14, 2022100.00%
  • Nov 2, 202250.00%
  • Dec 21, 202222.22%
  • Feb 8, 202318.18%
▼ Down
  • Jun 11, 2014-46.67%
  • May 8, 2013-33.33%
  • Sep 10, 2014-25.00%
  • Nov 13, 2013-25.00%
  • May 13, 2009-22.22%

Calendar-Month Seasonality[10]

Average single-period return aggregated by the calendar month in which the period ended.

MONTHAVG RETURNHIT %N
January0.00%0.0%1
February5.41%50.0%2
March-2.76%42.9%7
April-1.44%33.3%3
May-16.30%33.3%3
June-8.14%42.9%7
July50.80%75.0%4
August6.27%100.0%2
September9.62%33.3%6
October-4.04%20.0%5
November-1.68%20.0%5
December-1.83%37.5%8

N = 54 OBS · GENERATED 2026-05-17 19:00Z

Forecast Approach

scenario weighted: We aggregate probability-weighted outcomes across active tracked scenarios, each with historical base rates and current heat scores. The projection above is the sample-weighted central estimate across current macro regime anchors; the scenario list below adds qualitative context.

Consensus source: ECB/BoE forward guidance

Key Drivers & Risks

  • ECB/BoE policy
  • European inflation
  • Growth differentials
  • Political risk

Historical Volatility

Moderate: similar to US rates

Frequently Asked Questions

What factors could push ECB Marginal Lending Rate higher?

The primary drivers that tend to lift ECB Marginal Lending Rate depend on the current macro regime. European markets carry the sovereign debt overhang of the post-2010 era in their pricing. Bund-BTP spreads remain the cleanest gauge of periphery stress, while HICP drives ECB policy expectations. UK macro diverges post-Brexit, with sterling volatility and Gilt-Bund spreads carrying political risk premia that sometimes detach entirely from U.S. moves. Convex tracks these drivers live across the EU/UK Rates category and flags when multiple forces align in the same direction. See the "Key Drivers & Risks" section on this page for the current list, and check the regime dashboard for how the macro backdrop is currently tilted.

What factors could push ECB Marginal Lending Rate lower?

The same transmission channels that drive ECB Marginal Lending Rate higher operate in reverse when conditions flip. The risk drivers listed above map directly to scenarios that, if triggered, would pull this metric in the opposite direction. Convex aggregates these into a scenario-weighted probability distribution rather than a point forecast, so the magnitude depends on which scenarios activate.

Where does consensus see ECB Marginal Lending Rate heading?

Rather than publish a point target that goes stale the day after release, Convex assembles consensus from the macro regime classification, active scenario probabilities, and historical base rates. Point forecasts from banks and strategists are worth reading for context, but they typically cluster around the consensus and miss the tail events that actually move markets. The scenario-weighted approach here captures that tail risk explicitly.

What is the historical range for ECB Marginal Lending Rate?

Historical ranges for ECB Marginal Lending Rate vary dramatically by regime. A level that is extreme in Goldilocks can be routine in Stagflation, and vice versa. The Historical Volatility section on this page describes the typical range and regime-specific behavior. For the full multi-decade history, visit the ECB Marginal Lending Rate chart page, which includes selectable time ranges up to five years and downloadable data.

How often is the ECB Marginal Lending Rate forecast updated?

This forecast page recalculates whenever the underlying data or regime classification changes, typically within hours of new data releases. The scenario probabilities refresh daily as the macro state is regenerated. Specific drivers listed on this page reflect the current state of the Convex regime engine, not static historical assumptions.

Is this forecast actionable for trading?

Convex forecasts are informational and educational. They describe probability distributions and regime-conditional paths rather than specific entry and exit levels. Traders and portfolio managers use them alongside other inputs including position sizing rules, risk management, and their own conviction calibration. They are not investment advice.

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Forecasts are model-based projections derived from current regime classification, scenario probabilities, and historical patterns. They are not investment advice. All investments involve risk.