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Interest rates
19.01.2018
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 November 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 increased to 1.61% in November 2017 from 1.60% during the previous month. The volume of these newly granted loans has increased by 14 million euros on a monthly basis to reach 204 million euros during the last reference period. On a yearly basis, the interest rate has decreased by 5 basis points and the volume of newly granted loans has increased by 11 million euros.
The fixed[3] interest rate on mortgage loans granted to households has barely changed on a monthly basis to reach 1.81% in November 2017. The volume of these newly granted loans has increased by 25 million euros on a monthly basis and has consequently amounted to 323 million euros during the last reference period. On a yearly basis, this interest rate has increased by 19 basis points and the volume of newly granted loans has decreased by 38 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 increased by 10 basis points on a monthly basis to reach 2.65% in November 2017. The volume of these newly granted loans has decreased by 3 million euros compared to October and has consequently amounted to 22 million euros in November 2017. On a yearly basis, the interest rate has decreased by 4 basis points whereas the volume of newly granted loans has decreased by 1 million euros.
The interest rate on households’ fixed-term deposits that have an initial maturity below or equal to 1 year has decreased by 4 basis points on a monthly basis to reach 5 basis points during November 2017.
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 decreased by 7 basis points to reach 1.70% in November 2017. The volume of newly granted loans has decreased by 13 million euros on a monthly basis, reaching 831 million euros during the last reference period. On a yearly basis, this interest rate has decreased by 6 basis points and the volume of newly granted loans has increased by 97 million euros.
The variable2 interest rate on loans above 1 million euros granted to NFCs has decreased by 3 basis points compared to the previous month to reach 1.20% during November 2017. The volume of these newly granted loans has increased by 340 million euros on a monthly basis and has consequently reached 5 505 million euros. On a yearly basis, this interest rate has decreased by 9 basis points and the volume of newly granted loans has decreased by 768 million euros.
The interest rate on fixed-term deposits of NFCs with an initial maturity below or equal to 1 year has turned positive for the first time since July 2015. The interest rate has reached 7 basis points in November 2017 from -10 basis points during the previous month.
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.
