Commentary on MFI interest rates

April 2019

Interest rates on new business

Interest rates on new deposits of households were almost unchanged in April. Slight changes were recorded for non-financial corporations.

The interest rate on household deposits with agreed maturity edged down to 1.45%. The interest rate on overnight deposits stayed at the February level (0.15%). The interest rate on current account deposits was 0.04%, unchanged from January. The rate on deposits redeemable at notice was also unchanged, reaching its February level of 1.15% (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 by 0.03 percentage point to 1.38%. The interest rate on overnight deposits rose only marginally to 0.19%. The interest rate on current account deposits saw the same increase, reaching 0.17%. 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 (1.38%).

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

Within interest rates on new loans to households, overdrafts recorded the biggest change in April. 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 rose slightly to 4.62%. The interest rate on consumer credit dropped to 8.37% month on month, the rate on loans for house purchase declined to 2.94% and the rate on building society loans picked up to 4.34%. The interest rate on mortgage loans fell slightly to 2.75%, up by 0.31 percentage point on a year earlier. The interest rate on other loans increased to 4.57%. The interest rate on overdrafts stood at 14.97%, down by 0.32 percentage point.

Interest rates on new loans to non-financial corporations (excluding overdrafts, revolving loans and credit cards) fell to 3.01%. The rate on loans of up to CZK 7.5 million rose to 4.43%. The rate on loans of over CZK 7.5 million and up to CZK 30 million grew to 3.42% and the rate on new loans of over CZK 30 million decreased by 0.44 percentage point to 2.79%. The interest rate on overdrafts, revolving loans and credit card loans fell marginally to 3.75%.

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

Interest rates on outstanding amounts

The average interest rates on outstanding amounts of deposits of households remained unchanged in April. Only slight 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 April. Interest rates on outstanding amounts of loans to non-financial corporations also recorded only marginal changes.

The overall interest rate on loans to households was 3.66%, unchanged from February. At 2.51%, the interest rate on loans for house purchase was unchanged from September, i.e. for the eighth consecutive month (with the rate on outstanding amounts of mortgage loans also staying unchanged at the February level of 2.31%). The rate on consumer credit decreased to 9.61% and the rate on other loans increased marginally to 3.76%.

The average interest rate on loans to non-financial corporations was 3.68%, unchanged from February. The rate on loans with maturity of up to one year decreased to 3.75%. The rate on loans with maturity of over one year and up to five years stayed at its March level (4.00%). The rate on loans with maturity of over five years was also flat (at its January level of 3.54%).


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