Commentary on MFI interest rates
Interest rates on new business
In June, interest rates on new deposits of households recorded the largest change for deposits with agreed maturity. Changes recorded in the same category for non-financial corporations were similar.
The interest rate on household deposits with agreed maturity fell to 0.75%. 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 was 1.08%, the same as in May (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 interest rate on overnight deposits of non-financial corporations was unchanged at 0.05% from May. The interest rate on current account deposits picked up to 0.05%. 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 (0.49%).
Interest rates of commercial banks on CZK deposits held by Czech residents – new business
Within interest rates on new loans to households, overdrafts recorded the biggest change in June. Interest rates on loans to non-financial corporations saw the largest change for loans of over CZK 30 million.
The overall interest rate on consumer credit, loans for house purchase and other loans fell to 4.02%. The interest rate on consumer credit rose to 8.55% month on month (down by 0.77 percentage point in year-on-year terms) and the interest rate on loans for house purchase was unchanged from April at 2.62%. The rate on building society loans was 3.57%, the same as in May. The interest rate on mortgage loans was also flat at the May level. It stood at 2.43%. Other loans were remunerated at a lower rate than in May (3.51%). The interest rate on overdrafts dropped to 12.18%.
Interest rates on new loans to non-financial corporations (excluding overdrafts, revolving loans and credit cards) decreased to 2.44%. The rate on loans of up to CZK 7.5 million fell to 3.67%, the rate on loans of over CZK 7.5 million and up to CZK 30 million edged up to 2.43% and the rate on new loans of over CZK 30 million declined to 2.33%.
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 June. Changes for non-financial corporations were marginal.
The average changes for interest rates on outstanding amounts of loans to households were moderate in June. The same was true of interest rates on outstanding amounts of loans to non-financial corporations.
The overall interest rate on loans to households edged down to 3.75%. The interest rate on loans for house purchase declined to 2.53% (with the rate on outstanding amounts of mortgage loans falling to 2.32%), the rate on consumer credit decreased to 10.22% and the rate on other loans was flat at 3.60%.
The average interest rate on loans to non-financial corporations fell to 2.87%. The rate on loans with maturity of up to one year increased to 2.79%. The rate on loans with maturity of over one year and up to five years declined to 3.03%. The rate on loans with maturity of over five years decreased slightly, reaching 2.86%.
- 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.