Commentary on MFI interest rates

December 2025

Interest rates on new business

Interest rates on new deposits of households recorded the largest changes for deposits with agreed maturity and overnight deposits in December. As regards non-financial corporations, interest rates on overnight deposits saw the largest change.

The interest rate on household deposits with agreed maturity fell by 0.02 percentage point to 2.89%. By contrast, the interest rate on overnight deposits increased by 0.02 percentage point to 1.44%. The interest rate on current account deposits rose slightly to 0.14%. The interest rate on deposits redeemable at notice increased to 1.66% (the only rate to include, besides the household sector, deposits of non-financial corporations, which are negligible in this category).

The rate on deposits of non-financial corporations with agreed maturity was flat at 2.90%. The interest rate on overnight deposits decreased by 0.06 percentage point to 0.98%. The interest rate on current account deposits was unchanged at 0.57%. 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 also unchanged at 2.90%.

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, credit card loans recorded the largest change in December. Within interest rates on loans to non-financial corporations, the biggest changes were recorded for overdrafts.

The overall interest rate on consumer credit, loans for house purchase and other loans fell to 5.29%. The interest rate on consumer credit rose month on month to 7.98%. The interest rate on loans for house purchase increased slightly to 4.57%. The interest rate on building society loans decreased to 5.20%. The interest rate on mortgage loans increased to 4.50%, down by 0.13 percentage points on a year earlier. The interest rate on other loans fell to 5.02%. The interest rate on overdrafts and revolving loans increased to 14.42%. Within this category, the interest rate on credit cards fell by 0.38 percentage point to 16.81% and the interest rate on overdrafts was flat at 15.71%.

Interest rates on new loans to non-financial corporations (excluding overdrafts, revolving loans and credit cards) were unchanged at 5.16%. The rate on loans of up to CZK 7.5 million rose to 5.63%. The rate on loans of over CZK 7.5 million and up to CZK 30 million was flat at 5.20% and the rate on new loans of over CZK 30 million edged up to 5.14%. The interest rate on overdrafts, revolving loans and credit card loans was up to 5.34%. The interest rate on overdrafts stood at 5.54%, up by 0.09 percentage point.

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 December. More pronounced changes were recorded for non-financial corporations.

The average changes in interest rates on outstanding amounts of loans to households were just a few basis points in December. Interest rates on outstanding amounts of loans to non-financial corporations changed at a similar pace.

The overall interest rate on loans to households edged up to 4.59%. The interest rate on loans for house purchase also rose, reaching 3.84% (with the rate on outstanding amounts of mortgage loans picking up to 3.71%). The rate on consumer credit dropped to 8.36% and the rate on other loans increased to 4.80%.

The average interest rate on loans to non-financial corporations edged down to 5.16%. The rate on loans with maturity of up to one year increased to 5.40%. The rate on loans with maturity of over one year and up to five years declined to 5.68%. The rate on loans with maturity of over five years increased, reaching 4.87%.

Notes: