04/30/2024 | News release | Distributed by Public on 04/30/2024 02:04
Interest rates on new deposits of households recorded the largest change for deposits with agreed maturity in March. Deposits in this category also saw the largest change among non-financial corporations.
The interest rate on household deposits with agreed maturity declined by 0.27 percentage point to 5.16%. The interest rate on overnight deposits edged down to 1.70%. The interest rate on current account deposits declined to 0.23%. The interest rate on deposits redeemable at notice decreased to 2.56% (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 fell by 0.31 percentage point to 5.39%. The interest rate on overnight deposits decreased to 1.81%. The interest rate on current account deposits declined to 0.97%. 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) were remunerated at a lower rate (5.39%).
Chart 1 - Interest rates of commercial banks on CZK deposits held by Czech residents - new business
Source: ARAD data series system
Within interest rates on new loans to households, the biggest change was recorded for other loans in March. Within interest rates on loans to non-financial corporations, the biggest change was recorded for overdrafts.
The overall interest rate on consumer credit, loans for house purchase and other loans fell to 6.40%. The interest rate on consumer credit declined month on month to 8.83%. The interest rate on loans for house purchase fell to 5.16%. The interest rate on building society loans decreased to 6.25%. The interest rate on mortgage loans dropped slightly to 5.05%, down by 0.10 percentage point on a year earlier. The rate on other loans decreased by 0.39 percentage point to 5.90%. The interest rate on overdrafts and revolving loans dropped to 15.34%. Within this category, the interest rate on overdrafts fell to 17.25%. The interest rate on credit cards fell to 16.90%.
Interest rates on new loans to non-financial corporations (excluding overdrafts, revolving loans and credit cards) decreased to 7.41%. The rate on loans of up to CZK 7.5 million was down to 7.46%. The rate on loans of over CZK 7.5 million and up to CZK 30 million fell to 6.80% and the rate on new loans of over CZK 30 million decreased to 7.50%. The interest rate on overdrafts, revolving loans and credit card loans was down to 7.86%. The interest rate on overdrafts stood at 8.01%, down by 0.49 percentage point.
Chart 2 - Interest rates of commercial banks on CZK loans provided to Czech residents - new business
Source: ARAD data series system
The average interest rates on outstanding amounts of deposits of households changed by just a few tenths of a percentage point in March. More pronounced 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 March. Interest rates on outstanding amounts of loans to non-financial corporations saw larger changes.
The overall interest rate on loans to households increased to 4.17%. The interest rate on loans for house purchase also rose, reaching 3.29% (with the rate on outstanding amounts of mortgage loans picking up to 3.14%). The rate on consumer credit dropped to 8.73% and the rate on other loans increased marginally to 4.65%.
The average interest rate on loans to non-financial corporations fell to 6.76%. The rate on loans with maturity of up to one year decreased to 8.01%. The rate on loans with maturity of over one year and up to five years declined to 7.84%. The rate on loans with maturity of over five years dropped to 5.90%.
Notes: