Commentary on MFI interest rates
Interest rates on new business
In December, interest rates on new deposits of households recorded the largest change for deposits with agreed maturity. Changes were very large in the same category for non-financial corporations.
The rate on household deposits with agreed maturity rose to 0.66%. The interest rate on overnight deposits has been flat at 0.10% since May 2017. The rate on current account deposits stayed at the lowest level since the start of the measurement for the eighth consecutive month (0.04%). The rate on deposits redeemable at notice increased marginally to 1.08% (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 at its all-time low of 0.02%. The rate on deposits with agreed maturity of up to one year (which as a rule account for 100% of all deposits with agreed maturity in this sector) saw a decrease of more than one percentage point to -0.91%. Reporting entities have confirmed this, citing extraordinary short-term operations at the turn of the year as the reason.
Interest rates of commercial banks on CZK deposits held by Czech residents – new business
Within interest rates on new loans to households, other loans recorded the biggest change in December. 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 3.68%. The interest rate on consumer credit fell to 8.70% month on month (down by 1.38 percentage points in year-on-year terms) and the interest rate on loans for house purchase edged up to 2.38%. The rate on building society loans increased from 3.38% in November to 3.44% in December. Other loans were remunerated at a lower rate than in November (3.10%). The interest rate on mortgage loans rose slightly to 2.22%. The interest rate on overdrafts was down to 15.20%.
Interest rates on new loans to non-financial corporations (excluding overdrafts, revolving loans and credit cards) increased to 2.33%. The rate on loans of up to CZK 7.5 million declined to 3.32%, the rate on loans of over CZK 7.5 million and up to CZK 30 million increased to 2.41% and the rate on new loans of over CZK 30 million rose to 2.22%.
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 December. By contrast, changes were more pronounced for non-financial corporations.
The average interest rates on outstanding amounts of loans to households were almost unchanged in December. 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 3.90%. The interest rate on loans for house purchase declined to 2.60% (with the rate on outstanding amounts of mortgage loans falling to 2.38%), the rate on consumer credit decreased to 10.85% and the rate on other loans was unchanged from November at 3.62%.
The average interest rate on loans to non-financial corporations edged up to 2.74%. The rate on loans with maturity of up to one year increased to 2.52%. The rate on loans with maturity of over one year and up to five years rose to 2.97%. The rate on loans with maturity of over five years also increased slightly, reaching 2.75%.
- 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/2009/7) (pdf, 973 kB)
- 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.