The composite cost-of-borrowing indicator for new loans to households1 for house purchase decreased by 5 basis points from the previous month to 1.97% in June. This was the 5th decrease in a row since February 2016... - ECB

Press Release -  Euro area bank interest rate statistics: June 2016 

• The composite cost-of-borrowing indicator for new loans to corporations1 remained broadly unchanged at 1.90% in June 2016. 

• The composite cost-of-borrowing indicator for new loans to households1 for house purchase decreased by 5 basis points from the previous month to 1.97% in June. This was the 5th decrease in a row since February 2016.

 • In the same month, the euro area composite interest rate for new deposits from both corporations and households remained broadly unchanged.

Bank interest rates for corporations 

While the composite cost-of-borrowing indicator, which combines interest rates on all loans to corporations, remained broadly unchanged, June 2016 saw mixed developments in the cost of new borrowing by corporations both for small loans of up to €250,000 and for loans of over €1 million. For example, the interest rate on new loans of over €1 million with a floating rate and an initial rate fixation period of up to three months increased by 7 basis points from the previous month to 1.34%. 

This month-on-month change was driven by the interest rate effect. The rate for new loans of the same size with an initial rate fixation period of over ten years decreased by 19 basis points to 1.76%. The month-on-month change was driven by the interest rate effect. In the case of new loans of 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 26 basis points to 2.65%. The month-on-month decrease was driven by the interest rate effect.

As regards new deposit agreements, the interest rate on deposits from corporations with an agreed maturity of up to one year stayed more or less constant at 0.14% in June 2016. The interest rate on new loans to sole proprietors and unincorporated partnerships with a floating rate and an initial rate fixation period of up to one year decreased by 5 basis points to 2.47%.

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