August 2011 saw uneven developments in the cost of new borrowing by non-financial corporations. For example, the interest rate on new loans over €1 million with a floating rate or an initial rate fixation period of up to three months decreased by 8 basis points from the previous month to stand at 2.80%. The corresponding rate for new loans of the same size with an initial rate fixation period of over ten years increased by 82 basis points to stand at 4.06% in August 2011. In the case of new loans 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 6 basis points to stand at 4.44%. As regards new deposit agreements, the interest rate on deposits from non-financial corporations with an agreed maturity of up to one year decreased by 13 basis points to stand at 1.64% in August 2011 (having stood at 1.77% in July 2011).
Most significant MFI interest rates on new business loans to sole proprietors and
unincorporated partnerships:The interest rate on new loans to sole proprietors and unincorporated partnerships with a floating rate or an initial rate fixation period of up to one year rose by 22 basis points to stand at 4.04%. This increase was driven by changes in the corresponding weights of individual countries.
Most significant MFI interest rates on new business loans to, and deposits from, households: In August 2011 the interest rate on new loans to households for consumption with a floating rate and an initial rate fixation period of up to one year rose by 20 basis points to stand at 5.33%. This was evenly driven by developments in the interest rates applied in the various euro area countries and by changes in the weights of countries. The cost of new borrowing by households also increased with regard to housing loans in the same period. The interest rate on loans for house purchases with a floating rate and an initial rate fixation period of up to one year increased by 14 basis points to stand at 3.47% in August 2011. Moreover, the interest rate on loans with an initial rate fixation period of over ten years decreased by 4 basis points to stand at 4.15% in August 2011.
Rates agreed on new deposits from households showed mixed developments. The interest rate on deposits with an agreed maturity of up to one year remained basically unchanged at 2.74%. Moreover, the interest rate on deposits redeemable at three months’ notice rose by 7 basis points to stand at 1.77% in August 2011.
