06/28/2024 | News release | Distributed by Public on 06/28/2024 02:16
Interest rates on new deposits of households recorded the largest change for deposits with agreed maturity in May. Deposits in this category also saw the largest change among non-financial corporations.
The interest rate on household deposits with agreed maturity declined by 0.37 percentage point to 4.48%. The interest rate on overnight deposits fell to 1.49%. The interest rate on current account deposits edged down to 0.17%. The interest rate on deposits redeemable at notice decreased to 2.38% (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 0.43 percentage point to 4.66%. The interest rate on overnight deposits decreased to 1.68%. The interest rate on current account deposits declined to 0.94%. 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 (4.66%).
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, consumer credit recorded the most significant change in May. 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 6.12%. The interest rate on consumer credit rose by 0.14 percentage point month on month to 8.86%. The rate on loans for house purchase fell to 4.99%. The interest rate on building society loans decreased to 6.01%. The interest rate on mortgage loans decreased to 4.90%, down by 0.38 percentage points on a year earlier. The interest rate on other loans increased to 5.56%. The interest rate on overdrafts and revolving loans dropped to 15.26%. Within this category, the interest rate on overdrafts fell to 17.16%. The interest rate on credit cards declined to 17.94%.
Interest rates on new loans to non-financial corporations (excluding overdrafts, revolving loans and credit cards) decreased to 6.91%. The rate on loans of up to CZK 7.5 million was down to 7.12%. The rate on loans of over CZK 7.5 million and up to CZK 30 million fell to 6.48% and the rate on new loans of over CZK 30 million decreased to 6.94%. The interest rate on overdrafts, revolving loans and credit card loans was down to 7.30%. The interest rate on overdrafts stood at 7.43%, 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 May. More pronounced changes were recorded for non-financial corporations.
The average interest rates on outstanding amounts of loans to households changed by just a few basis points in May. Interest rates on outstanding amounts of loans to non-financial corporations saw larger changes.
The overall interest rate on loans to households increased to 4.24%. The interest rate on loans for house purchase also rose, reaching 3.36% (with the rate on outstanding amounts of mortgage loans picking up to 3.21%). The rate on consumer credit increased marginally to 8.78% and the rate on other loans was unchanged from April at 4.66%.
The average interest rate on loans to non-financial corporations fell to 6.43%. The rate on loans with maturity of to one year decreased to 7.46%. The rate on loans with maturity of over one year and up to five years declined to 7.39%. The rate on loans with maturity of over five years dropped to 5.70%.
Notes: