Česká národní banka


Commentary on MFI interest rates

March 2018

Interest rates on new business

 

In March, 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 0.78%. The interest rate on overnight deposits rose marginally to 0.11%. The interest rate on current account deposits rebounded from its record low, rising to 0.05%. The rate on deposits redeemable at notice was unchanged from February at 1.09% (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 has remained at a record low of 0.03% since February 2017. The rate on current account deposits was unchanged from February at 0.03%. 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 lower rate (0.43%).

 

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, the biggest change was recorded for credit cards in March. Interest rates on loans to non-financial corporations saw the largest change for loans of over CZK 7.5 million and up to CZK 30 million.

The overall interest rate on consumer credit, loans for house purchase and other loans fell to 4.00%. The interest rate on consumer credit fell to 8.49% month on month (down by 0.93 percentage point in year-on-year terms) and the interest rate on loans for house purchase picked up to 2.57%. The rate on building society loans increased from 3.37% in February to 3.48% in March. Other loans were remunerated at a higher rate than in February (3.75%). The interest rate on mortgage loans rose for the seventh consecutive time, reaching 2.41%. The interest rate on credit cards declined to 19.03%.

Interest rates on new loans to non-financial corporations (excluding overdrafts, revolving loans and credit cards) fell to 2.35%. The rate on loans of up to CZK 7.5 million rose to 3.63%, the rate on loans of over CZK 7.5 million and up to CZK 30 million decreased to 2.49% and the rate on new loans of over CZK 30 million fell to 2.20%.

 

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 household deposits saw only marginal changes in March. Changes recorded for non-financial corporations were similar.

 

The average interest rates on outstanding amounts of loans to households were almost unchanged in March. The same was true of interest rates on outstanding amounts of loans to non-financial corporations.

The overall interest rate on loans to households dropped to 3.81%. The interest rate on loans for house purchase edged down to 2.56% (with the rate on outstanding amounts of mortgage loans falling to 2.35%), the rate on consumer credit decreased to 10.45% and the rate on other loans grew to 3.65%.

The average interest rate on loans to non-financial corporations rose somewhat to 2.88%. The rate on loans with maturity of up to one year increased to 2.76%. The rate on loans with maturity of over one year and up to five years rose to 3.07%. The rate on loans with maturity of over five years also increased slightly, reaching 2.86%.

 


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