Commentary on MFI interest rates
Interest rates on new business
In August, interest rates on new deposits of households recorded the largest change for deposits with agreed maturity. As regards non-financial corporations, the biggest change also occurred for deposits with agreed maturity and it was the same as in the case of households.
The rate on household deposits with agreed maturity rose to 1.04%. The interest rate on overnight deposits was 0.11%, unchanged from March. The interest rate on current account deposits was also flat at its March level, i.e. 0.05%. The rate on deposits redeemable at notice increased marginally to 1.08%, back to its June level (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 picked up to 0.90%. The interest rate on overnight deposits increased by 0.02 percentage point to 0.07%. The interest rate on current account deposits rose slightly to 0.06%. 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 remunerated at a higher rate (0.90%).
Interest rates of commercial banks on CZK deposits held by Czech residents – new business
Within interest rates on new loans to households, the biggest change was recorded for other loans in August. Interest rates on loans to non-financial corporations saw the largest change for overdrafts, revolving loans and credit card loans.
The overall interest rate on consumer credit, loans for house purchase and other loans fell to 4.06%. The interest rate on consumer credit decreased to 8.47% month on month (down by 0.95 percentage point in year-on-year terms), the rate on loans for house purchase edged up to 2.67% and the rate on building society loans rose to 3.51%. The interest rate on mortgage loans increased to 2.49%. Other loans were remunerated at 3.87%, up by 0.31 percentage point from July. The interest rate on overdrafts rose to 15.16%.
Interest rates on new loans to non-financial corporations (excluding overdrafts, revolving loans and credit cards) fell to 2.81%. The rate on loans of up to CZK 7.5 million rose to 3.88%, the rate on loans of over CZK 7.5 million and up to CZK 30 million picked up to 2.84% and the rate on new loans of over CZK 30 million decreased to 2.67%. The interest rate on overdrafts, revolving loans and credit card loans was up by 0.24 percentage point to 3.17%.
Interest rates of commercial banks on CZK loans provided to Czech residents – new business
Interest rates on outstanding amounts
The average interest rates on outstanding amounts of deposits of households remained unchanged in August. Changes were more pronounced for non-financial corporations.
The average changes in interest rates on outstanding amounts of loans to households were moderate in August. Interest rates on outstanding amounts of loans to non-financial corporations recorded larger changes.
The overall interest rate on loans to households edged down to 3.73%. The interest rate on loans for house purchase was unchanged from July at 2.52% (with the rate on outstanding amounts of mortgage loans staying at 2.31%), the rate on consumer credit decreased to 10.12% and the rate on other loans rose slightly to 3.63%.
The average interest rate on loans to non-financial corporations rose to 3.12%. The rate on loans with maturity of up to one year increased to 3.15%. The rate on loans with maturity of over one year and up to five years picked up to 3.38%. The rate on loans with maturity of over five years was up to 3.02%.
- Interest rate statistics are based on Regulation of the European Central Bank on interest rates applied by monetary financial institutions to deposits and loans vis-à-vis households and non-financial corporations (ECB/2013/34) (pdf, 1 MB).
- The concept of new business and outstanding amounts
- In the case of specific indicators – overnight deposits, deposits redeemable at notice, bank overdrafts, revolving loans and credit card loans – the concept of new business is extended to the whole outstanding amount.