Euro area MFI interest rate statistics May 2014
In May 2014 the interest rate developments in the euro area were characterised by broadly
based reductions. Both, the composite cost-of-borrowing indicator for non-financial corporations and households as well as the euro area composite interest rate for deposits from non-financial corporations and households decreased.
Most significant MFI interest rates on new business loans to, and deposits from, nonfinancial
corporations:
May 2014 saw a decrease in the cost of new borrowing by non-financial corporations both for
small loans and for loans of over € 1m. For example, the interest rate on new loans over €1m with a floating rate and an initial rate fixation period of up to three months decreased by 13 basis points from the previous month to stand at 2.07%. The corresponding rate for new loans of the same size with an initial rate fixation period of over 10 years decreased by 16 basis points to stand at 3.04%. The month-on-month decrease was driven by the interest rate effect, which accounted for 13 basis points of the change. In the case of new loans up to € 250,000 with a floating rate and an initial rate fixation period of up to three months, the average rate charged decreased by 9 basis points to stand at 4.50%. The month-on-month decrease was driven by the interest rate effect. The composite cost-of-borrowing indicator for new loans to non-financial corporations decreased by seven basis points to stand at 2.91%. As regards new deposit agreements, the interest rate on deposits from non-financial corporations with an agreed maturity of up to one year fell by nine basis points to stand at 0.61% in May 2014.
Most significant MFI interest rates on new business loans to sole proprietors and
unincorporated partnerships:
The interest rate on new loans to sole proprietors and unincorporated partnerships with a
floating rate or an initial rate fixation period of up to one year increased by 19 basis points to
stand at 3.29%. This increase was driven by the weight effect.
Most significant MFI interest rates on new business loans to, and deposits from,
households:
In May 2014 the interest rate on new loans to households for consumption with a floating rate
and an initial rate fixation period of up to one year remained more or less constant at 5.69%. In the same period, the cost of new borrowing by households with regard to housing loans saw mixed developments. The interest rate on loans for house purchase with a floating rate and an initial rate fixation period of up to one year remained basically unchanged at 2.71%.
Furthermore, the interest rate on loans with an initial rate fixation period of over ten years fell by 10 basis points to stand at 3.14% in May 2014. This decrease was driven by the interest rate effect. The composite cost-of-borrowing indicator for new loans to households decreased by six basis points to stand at 2.93%.
Rates agreed on new deposits from households saw mixed developments. The interest rate on deposits with an agreed maturity of up to one year fell by 15 basis points to stand at 1.42%. Finally, the interest rate on deposits redeemable at three months’ notice remained basically unchanged at 1.05% in May 2014.
