BoE: Rising loan rates in June – Unchanged deposit rates

BoE: Rising loan rates in June – Unchanged deposit rates

Interest rates on loans moved upwards in June, while interest rates on deposits remained unchanged, as can be seen from the data published on Tuesday by the Bank of Greece.

In particular, the average weighted interest rate on new deposits remained almost unchanged at 0.03%, in June 2022, while the average weighted interest rate on new loans increased to 3.98%.

The interest rate spread between new deposits and loans increased to 3.95 percentage points.

The weighted average interest rate of all existing deposits remained unchanged at 0.03%, while the weighted average interest rate of existing loans remained almost unchanged at 3.48%.

The interest rate spread between existing deposits and loans remained almost unchanged at 3.45 percentage points.

1. Interest rates on new deposits and loans in euros

New Deposits

The weighted average interest rate on all new deposits was almost unchanged at 0.03%.

In particular, the average overnight deposit rate from households remained almost unchanged at 0.03%, while the corresponding rate from businesses remained unchanged at 0.00%. The average interest rate on deposits with an agreed term of up to 1 year from households also remained unchanged, compared to the previous month, at 0.12%.

New Loans

The weighted average interest rate of all new loans to households and businesses increased by 13 basis points and stood at 3.98%.

In particular, the average interest rate on consumer loans without a fixed term (category that includes loans through credit cards, open loans and overdrafts from current accounts) decreased by 8 basis points and stood at 14.11%.

The average interest rate on fixed term and variable rate consumer loans increased by 36 basis points to 11.36%. The average interest rate on variable rate mortgages rose 32 basis points to 2.95%.

The average interest rate on non-fixed business loans was almost unchanged at 3.80%. The corresponding interest rate on professional loans decreased by 6 basis points and stood at 6.29%.

The average interest rate on new fixed-term and variable-rate business loans increased by 12 basis points in June 2022 to 3.01%. The average interest rate on regular maturity loans with a variable interest rate to small and medium enterprises (SMEs) decreased by 32 basis points and stood at 3.25%.

Regarding the structure of interest rates in terms of the amount of the loan, it is noted that the average interest rate for loans up to 250,000 euros decreased by 17 basis points to 4.50%, for loans from 250,001 to 1 million euros it increased by 8 basis points to 3.41% and for loans over 1 million euros it increased by 31 basis points to 2.92%.

2. Interest rates on existing deposit and loan balances in euros

Existing Deposits

The weighted average rate of total outstanding deposits (including overnight deposits) remained unchanged at 0.03%.

In particular, the average interest rates on the existing balances of deposits with an agreed duration of up to 2 years from households and from businesses also remained unchanged at 0.08% and 0.11% respectively.

Existing Loans

The weighted average interest rate on existing loans remained almost unchanged at 3.48%.

In particular, the average interest rate on existing mortgage loan balances with a duration of more than 5 years remained almost unchanged at 1.99%. The corresponding interest rate on consumer and other loans to individuals and private non-profit institutions increased by 6 basis points to 6.34%.

The average interest rate on business loans with a duration of more than 5 years increased by 4 basis points to 3.03%, while the corresponding interest rate on professional loans remained unchanged at 4.20%.

Source: Capital