Commentary on MFI interest rates

April 2020

Interest rates on new business

In April, interest rates on new deposits of households recorded the largest change for deposits with agreed maturity. This was also true of new deposits of non-financial corporations.

The interest rate on household deposits with agreed maturity decreased to 0.67%. The interest rate on overnight deposits also declined, to 0.20%. The interest rate on current account deposits fell marginally to 0.03%. The interest rate on deposits redeemable at notice decreased at the same pace to 1.25% (the only rate to include, besides the household sector, deposits of non-financial corporations, which are negligible in this category).

The rate on deposits of non-financial corporations with agreed maturity dropped to 0.60%. The interest rate on overnight deposits decreased to 0.17%. The interest rate on current account deposits also declined, reaching 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 lower rate (0.60%).

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 April. 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 dropped to 3.49%. The interest rate on consumer credit fell month on month to 8.12%. The rate on loans for house purchase decreased to 2.41%. By contrast, the interest rate on building society loans increased to 3.79%. The interest rate on mortgage loans declined to 2.32%, down by 0.44 percentage point on a year earlier. The rate on other loans decreased by 0.65 percentage point to 3.77%. The interest rate on credit cards rose to 18.87%. The interest rate on overdrafts dropped to 14.66%.

Interest rates on new loans to non-financial corporations (excluding overdrafts, revolving loans and credit cards) fell to 3.10%. The rate on loans of up to CZK 7.5 million was down to 4.25%. The rate on loans of over CZK 7.5 million and up to CZK 30 million decreased by 0.51 percentage point to 2.92% and the rate on new loans of over CZK 30 million also dropped, reaching 2.84%. The interest rate on overdrafts, revolving loans and credit card loans was down to 2.96%. The interest rate on overdrafts declined to 3.13%.

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 deposits of households changed only slightly in April, whereas the rates on deposits of non-financial corporations saw significant changes.

The average changes in interest rates on outstanding amounts of loans to households exceeded 0.10 percentage point in April. Interest rates on outstanding amounts of loans to non-financial corporations recorded bigger changes.

The overall interest rate on loans to households dropped to 3.53%. The interest rate on loans for house purchase decreased slightly to 2.50%, recording the first change since July 2019 (with the rate on outstanding amounts of mortgage loans also falling, to 2.32%). The rate on consumer credit declined to 9.11% and the rate on other loans edged down to 3.53%.

The average interest rate on loans to non-financial corporations fell to 3.08%. The rate on loans with maturity of up to one year decreased markedly to 3.03%. The rate on loans with maturity of over one year and up to five years declined to 3.41%. The rate on loans with maturity of over five years also decreased, reaching 2.99%.


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