Prince Henri Auditoire 02 BW

Interest rates

13.10.2017

The Banque centrale du Luxembourg (BCL) informs that, based on preliminary data, the main interest rates applied by Luxembourg’s credit institutions to euro area households and non-financial corporations (NFCs) for their loans and deposit operations have on average evolved as follows in August 2017.

Representative interest rates on new contracts[1] – loans and deposits – concluded with households

The variable[2] interest rate on mortgage loans granted to households has decreased by 2 basis points on a monthly basis to reach 1.63% in August 2017. The volume of these newly granted loans has decreased by 73 million euros on a monthly basis to reach 147 million euros during the last reference period. On a yearly basis, the interest rate has decreased by 4 basis points and the volume of newly granted loans has decreased by 8 million euros.

The fixed[3] interest rate on mortgage loans granted to households has remained broadly unchanged on a monthly basis to reach 1.86% during August 2017 from 1.87% in July 2017. The volume of these newly granted loans has decreased by 88 million euros on a monthly basis and has consequently amounted to 239 million euros during the last reference period. On a yearly basis, this interest rate has increased by 25 basis points and the volume of newly granted loans has increased by 21 million euros.

The interest rate on consumer loans that have an initial fixation period above 1 year and below or equal to 5 years has decreased by 19 basis points compared to July 2017, reaching 2.54% in August 2017. The volume of these newly granted loans has decreased by 4 million euros on a monthly basis to reach 23 million euros during August 2017. On a yearly basis, this interest rate has decreased by 17 basis points whereas the volume of newly granted loans has remained unchanged.

The interest rate on households’ fixed-term deposits that have an initial maturity below or equal to 1 year has decreased by 6 basis points on a monthly basis to reach 7 basis points during August 2017.

EN1

EN2

Representative interest rates on new contracts1 – loans and deposits – concluded with NFCs

The variable2 interest rate on loans below or equal to 1 million euros granted to NFCs has barely changed on a monthly basis to reach 1.77% in August 2017. The volume of newly granted loans has decreased by 43 million euros, reaching 779 million euros during the last reference period. On a yearly basis, this interest rate has decreased by 2 basis points and the volume of newly granted loans has increased by 60 million euros.

The variable2 interest rate on loans above 1 million euros granted to NFCs has decreased by 16 basis points to reach 1.16% during August 2017. The volume of these newly granted loans has increased by 414 million euros on a monthly basis and has consequently reached 5 802 million euros. On a yearly basis, this interest rate has increased by 10 basis points whereas the volume of newly granted loans has decreased by 261 million euros.

The interest rate on fixed-term deposits of NFCs with an initial maturity below or equal to 1 year has increased by 5 basis points on a monthly basis to reach -11 basis points in August 2017.

EN3

The tables pertaining to interest rates applied to credit institutions can be consulted and/or downloaded on the BCL’s website on the following pages:

http://www.bcl.lu/en/statistics/series_statistiques_luxembourg/03_Capital_markets/index.html

 Weighting method

The interest rates applied to new contracts are weighted within the categories of instruments concerned by the amounts of individual contracts. This results from the compilation of national aggregates carried out by reporting credit institutions and by the BCL.

[1] New contracts refer to any new agreement concluded between the household or the non-financial corporation and the reporting agent. New contracts include all financial contracts which mention for the first time the interest rate pertaining to the deposit or credit and all renegotiations of existing deposits or credits.

[2] Variable interest rate or rate with an initial fixation period inferior or equal to 1 year.

[3] Fixed interest rate weighted by the amounts of contracts for all mortgage loans granted, whatever the initial rate fixation period (above 1 year). This series has been published by the BCL only since February 2009 for methodological reasons linked to the identification of reporting agents.