Commentary on MFI interest rates

April 2025

Interest rates on new business

Interest rates on new deposits of households recorded the largest change for deposits with agreed maturity in April. As regards non-financial corporations, interest rates on current account deposits saw the smallest change.

The interest rate on household deposits with agreed maturity declined by 0.03 percentage point to 2.98%. The interest rate on overnight deposits edged up to 1.39%. The rate on current account deposits remained flat at 0.12%. The interest rate on deposits redeemable at notice decreased to 1.74% (this rate is the only one to include, in addition to the household sector, also similar deposits of non-financial corporations, whose volumes are negligible in this category).

The rate on deposits of non-financial corporations with agreed maturity was flat at 3.10%. The interest rate on overnight deposits rose to 1.13%. The rate on current account deposits rose by 0.02 percentage point, to 0.63%. Deposits with agreed maturity of up to one year (which as a rule account for 100% of all deposits with agreed maturity in the case of this sector) were unchanged at 3.10%.

Chart 1 – Interest rates of commercial banks on CZK deposits held by Czech residents – new business
Interest rates of commercial banks on CZK deposits held by Czech residents – new business

Source: ARAD data series system

Within interest rates on new loans to households, the biggest change was recorded for other loans in April. Interest rates on loans to non-financial corporations saw the largest changes for loans of up to CZK 7.5 million.

The overall interest rate on consumer credit, loans for house purchase and other loans fell to 5.58%. The interest rate on consumer credit declined month on month to 8.14%. The interest rate on loans for house purchase decreased slightly to 4.73%. The interest rate on building society loans picked up to 5.52%. The interest rate on mortgage loans decreased to 4.66%, down by 0.27 percentage points on a year earlier. The rate on other loans decreased by 0.24 percentage point to 5.12%. The interest rate on overdrafts and revolving loans decreased to 14.67%. The interest rate on credit cards rose to 17.37%.

Interest rates on new loans to non-financial corporations (excluding overdrafts, revolving loans and credit cards) fell slightly to 5.50%. The rate on loans of up to CZK 7.5 million declined by 0.15 percentage point to 5.84%. The rate on loans of over CZK 7.5 million and up to CZK 30 million increased to 5.38% and the rate on new loans of over CZK 30 million decreased to 5.48%. The interest rate on overdrafts, revolving loans and credit card loans dropped to 5.74%. The interest rate on overdrafts rose to 5.96%.

Chart 2 – Interest rates of commercial banks on CZK loans provided to Czech residents – new business
Interest rates of commercial banks on CZK loans provided to Czech residents – new business

Source: ARAD data series system

Interest rates on outstanding amounts

The average interest rates on outstanding amounts of deposits of households changed by just a few basis points in April. Similar changes were recorded for non-financial corporations.

The average interest rates on outstanding amounts of loans to households changed by just a few basis points in April. Interest rates on outstanding amounts of loans to non-financial corporations saw similar changes.

The overall interest rate on loans to households edged up to 4.46%. The interest rate on loans for house purchase also rose, reaching 3.65% (with the rate on outstanding amounts of mortgage loans picking up to 3.51%). The rate on consumer credit dropped to 8.60% and the rate on other loans increased to 4.74%.

The average interest rate on loans to non-financial corporations dropped marginally to 5.34%. The rate on loans with maturity of up to one year decreased to 5.75%. The rate on loans with maturity of over one year and up to five years declined to 6.06%. The rate on loans with maturity of over five years dropped to 4.92%.

Notes: