Commentary on MFI interest rates
Interest rates on new business
Interest rates on new household deposits changed only slightly in August. Non-financial institutions saw similar changes.
The rate on deposits with agreed maturity increased to 1.57% Interest rates on overnight deposits increased slightly, to 0.20%. Interest rates on current accounts stagnated at July’s 0.05% The interest rate on deposits redeemable at notice increased slightly, to 1.20% (the only rate to include, besides the household sector, deposits of non-financial corporations, which are negligible in this category).
The interest rate on deposits with agreed maturity for non-financial institutions rose by 0.03 percentage point to 1.67%. Interest rates on overnight deposits compared with July remained unchanged at 0.23%. Interest rates on deposits in current accounts also stagnated at 0.21 %. 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) rose slightly to 1.67%.
Interest rates of commercial banks on CZK deposits held by Czech residents – new business
Rates on new loans to households recorded the most significant change for other loans in August. Interest rates on loans to non-financial corporations recorded the biggest change for loans of over CZK 30 million.
Overall consumer credit, housing loans and other interest rates fell to 4.42%. The interest rate on consumer credit fell month-on-month to 8.46 %. The interest rate on housing loans declined to 2.77% and the interest rate on building society loans also fell, to 4.21%. The interest rate on mortgage loans fell slightly, to 2.61%, up by 0.12 percentage point year-on-year. The interest rate on other loans fell by 0.50 percentage point to 3.84 %. The interest rate on credit cards increased slightly to 18.71%.
The interest rate on new loans to non-financial corporations (excluding overdrafts, revolving loans and credit cards) fell to 2.94%. The rate on loans of up to CZK 7.5 million decreased slightly to 4.36%. The rate on loans of over CZK 7.5 million to CZK 30 million fell slightly to 3.43% and the rate on new loans of over CZK 30 million dropped by 0.32 percentage point to 2.80%. The interest rate on overdrafts, revolving loans and credit card loans increased slightly to 3.94%. The rate on overdrafts also increased, to 4.14%.
Interest rates of commercial banks on CZK loans provided to Czech residents – new business
Interest rates on outstanding amounts
Average interest rates on new household deposit balances changed only slightly in August. Non-financial institutions saw similar changes.
The average changes in interest rates on outstanding amounts of loans to households were in the order of hundredths of a percentage point in August. Interest rates on balances on loans to non-financial corporations recorded the same development.
The overall interest rate on loans to households stagnated at February’s 3.66 %. The interest rate on housing loans was also unchanged, remaining at the July value of 2.53% (of which the rate on mortgage loan balances rose slightly to 2.34%), the rate on consumer credit rose to 9.51% and the rate on other loans fell to 3.68%.
The average interest rate on loans to non-financial corporations was flat at July’s 3.80 %. The rate on loans with maturity of up to one year increased to 3.93%. The interest rate on loans with maturity of over one year and up to five years declined slightly to 4.19%. The interest rate on loans with maturity of over five years remained unchanged at 3.62%.
- 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.