Česká národní banka


Commentary on MFI interest rates

January 2019

Interest rates on new business 

Interest rates on new deposits of households changed mainly for deposits with agreed maturity in January. As regards non-financial corporations, the biggest changes were recorded in the same category as in the case of households.

The rate on household deposits with agreed maturity rose by 0.10 percentage point to 1.45%. At 0.14%, the interest rate on overnight deposits was the same as in December. The interest rate on current account deposits was 0.06%, unchanged from November. The rate on deposits redeemable at notice also changed only marginally, up by 0.01 percentage point to 1.13% (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 0.15 percentage point to 1.38%. The interest rate on overnight deposits was 0.14%, unchanged from December. The interest rate on current account deposits was also flat at its December level, i.e. 0.13%. 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, the biggest change was recorded for other loans in January. 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 to 4.58%. The interest rate on consumer credit fell to 8.49% month on month, the rate on loans for house purchase rose marginally to 2.93% and the rate on building society loans declined to 3.54%. The interest rate on mortgage loans rose to 2.80%, up by 0.50 percentage point on a year earlier. The volume of mortgage loans provided totalled CZK 18.8 billion, the lowest level since February 2016. However, the month-on-month change was CZK 1.7 billion. The rate on other loans rose by 0.51 percentage point, to 4.31%. The interest rate on credit cards picked up to 19.10%.

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 4.44%. The rate on loans of over CZK 7.5 million and up to CZK 30 million fell to 3.37% and the rate on new loans of over CZK 30 million decreased by 0.38 percentage point to 2.84%. The interest rate on overdrafts, revolving loans and credit card loans was up to 3.76%.

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 changed only very slightly in January. Changes were more pronounced for non-financial corporations.

The average changes in interest rates on outstanding amounts of loans to households were just a few basis points in January. Interest rates on outstanding amounts of loans to non-financial corporations recorded larger changes.

The overall interest rate on loans to households dropped to 3.67%. At 2.51%, the interest rate on loans for house purchase was unchanged from September, i.e. for the fifth consecutive month (with the rate on outstanding amounts of mortgage loans staying at 2.30% since September 2018). The rate on consumer credit decreased to 9.81% and the rate on other loans increased marginally to 3.74%.

The average interest rate on loans to non-financial corporations rose to 3.67%. The rate on loans with maturity of up to one year increased to 3.78%. The rate on loans with maturity of over one year and up to five years declined to 3.94%. The rate on loans with maturity of over five years was up to 3.54%.


Notes: