EU Economy - The composite cost-of-borrowing indicator for new loans to households for house purchase remained broadly unchanged at 1.81% in January 2017. . - ECB

Press Release - Euro area bank interest rate statistics: January 2017

Euro area bank interest rate statistics: January 2017  The composite cost-of-borrowing indicator for new loans to corporations1 remained broadly unchanged at 1.80% in January 2017.  The composite cost-of-borrowing indicator for new loans to households for house purchase remained broadly unchanged at 1.81% in January 2017. 

 In the same month, the euro area composite interest rate for new deposits from both corporations and households remained basically 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, January 2017 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 decreased by 11 basis points from the previous month to 1.22%. 

The rate for new loans of the same size with an initial rate fixation period of over ten years increased by 14 basis points to 1.88%. The month-on-month increase was mainly driven by the interest rate effect, which accounted for 12 basis points of the change. 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 increased by 9 basis points to 2.67%. The month-on-month change was driven by the interest rate effect.

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