As part of the interest rate benchmark changes, the Eurosystem has created the euro short-term rate ESTR and the compounded ESTR for standard tenors. In the financial and banking sectors, as well as in the economy at large, the ESTR is an important interest rate benchmark. Following best practices outlined in the Principles for Financial Benchmarks of the International Organization of Securities Commissions (IOSCO), the ESTR was designed and implemented.

The euro short-term rate, also known as the ESTR, is a measure reflecting the percentage change in a country's short-term interest rates. This can be either a rise or a fall depending on what is happening in that country. It is used to compare changes in interest rates between countries and has been used as an indicator for how well things are going in that country.