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Interest rates
12.06.2018
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 April 2018.
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 increased by 3 basis points compared to March 2018 to reach 1.59% in April 2018. The volume of these newly granted loans has remained relatively stable on a monthly basis to reach 254 million euros during last reference period. On a yearly basis, the interest rate has decreased by 4 basis points whereas the volume of newly granted loans has increased by 73 million euros.
The fixed[3] interest rate on mortgage loans granted to households has decreased by 5 basis points on a monthly basis to reach 1.92% in April 2018. The volume of these newly granted loans has decreased by 28 million euros on a monthly basis and has consequently amounted to 284 million euros during the last reference period. On a yearly basis, this interest rate has increased by 11 basis points and the volume of newly granted loans has increased by 41 million euros[4].
The interest rate on consumer loans that have an initial fixation period above 1 year and below or equal to 5 years has increased by 86 basis points on a monthly basis to reach 2.17% in April 2018. The volume of these newly granted loans has decreased by 43 million euros on a monthly basis and has consequently amounted to 28 million euros in April 2018. On a yearly basis, the interest rate has increased by 25 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 9 basis points during April 2018.
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 increased by 2 basis points on a monthly basis to reach 1.68% in April 2018. The volume of newly granted loans has decreased by 123 million euros on a monthly basis, reaching 795 million euros during the last reference period. On a yearly basis, this interest rate has decreased by 11 basis points whereas the volume of newly granted loans has increased by 20 million euros.
The variable2 interest rate on loans above 1 million euros granted to NFCs has increased by 10 basis points compared to previous month to reach 1.13% during April 2018. The volume of these newly granted loans has decreased by 1 295 million euros on a monthly basis and has consequently reached 4 949 million euros in April 2018. On a yearly basis, this interest rate has decreased by 19 basis points whereas the volume of newly granted loans has increased by 115 million euros.
The interest rate on fixed-term deposits of NFCs with an initial maturity below or equal to 1 year has increased by 4 basis points on a monthly basis to reach -18 basis points in April 2018.
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.
aux nouveaux contrats sont pondérés au sein des catégories d’instruments concernées par les montants des contrats individuels. Ceci résulte de la compilation des agrégats nationaux effectuée par les établissements de crédit déclarants et par la 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 since February 2009 only for methodological reasons linked to the identification of reporting agents.
[4] It is worth stressing that new lending volumes for housing loans granted at fixed rates have been revised between January 2017 and December 2017 due to reporting errors from one bank. The revised data provide a more accurate evolution of bank lending on a yearly basis. Despite the variation in volumes, the interest rate of such mortgage loans remains barely unchanged.
