Commentary on MFI interest rates

June 2019

Interest rates on new business

Interest rates on new deposits of households increased marginally in June. Slight changes were recorded for non-financial corporations.

At 1.54%, the interest rate on household deposits with agreed maturity was unchanged from May. The interest rate on overnight deposits edged up to 0.18%. The rate on current account deposits saw the same increase, reaching 0.05%. The interest rate on deposits redeemable at notice also increased marginally, reaching 1.17% (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 increased by 0.01 percentage point to 1.63%. The interest rate on overnight deposits rose slightly to 0.23%. The interest rate on current account deposits picked up to 0.22%. 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 slightly higher rate (1.63%).

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 June. 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 fell to 4.41%. The interest rate on consumer credit rose month on month to 8.37%. The interest rate on loans for house purchase declined to 2.87%. The interest rate on building society loans also fell, reaching 4.20%. The interest rate on mortgage loans dropped to 2.71%, up by 0.28 percentage point on a year earlier. The rate on other loans decreased by 0.29 percentage point to 4.08%. The interest rate on overdrafts was down to 15.02%.

The interest rate on new loans to non-financial corporations (excluding overdrafts, revolving loans and credit cards) increased to 3.23%. The rate on loans of up to CZK 7.5 million was down to 4.31%. The rate on loans of over CZK 7.5 million and up to CZK 30 million rose slightly to 3.45% and the rate on new loans of over CZK 30 million increased by 0.15 percentage point to 3.11%. The interest rate on overdrafts, revolving loans and credit card loans edged up to 3.94%. The interest rate on overdrafts was down to 4.13%.

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 June. 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 June. Interest rates on outstanding amounts of loans to non-financial corporations followed the same pattern.

The overall interest rate on loans to households was 3.66%, unchanged from February. The interest rate on loans for house purchase was also flat at 2.52% (with the rate on outstanding amounts of mortgage loans rising marginally to 2.33%), the rate on consumer credit dropped to 9.52% and the rate on other loans edged up to 3.81%.

The average interest rate on loans to non-financial corporations rose somewhat to 3.81%. The rate on loans with maturity of up to one year grew to 3.95%. The rate on loans with maturity of over one year and up to five years rose to 4.15%. The rate on loans with maturity of over five years also increased, to 3.63%.


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