June 2011 saw mixed developments in the interest rates associated to new borrowing by non-financial corporations, both for small loans and for loans of over €1 million. The interest rate on new loans over €1 million with a floating rate or an initial rate fixation period of up to three months increased by 13 basis points from the previous month to stand at 2.78%. The corresponding rate for new loans of the same size with an initial rate fixation period of over ten years decreased by 23 basis points to stand at 3.88% in June 2011. This was almost equally driven by developments in rates (‘interest rate effect’) and changes in weights across countries (‘weight effect’). 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 4.25%. As regards new deposit agreements, the interest rate on deposits from non-financial corporations with an agreed maturity of up to one year rose by 12 basis points to stand at 1.78% in June 2011 (having stood at 1.65% in May 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 7 basis points to stand at 3.82%.
Most significant MFI interest rates on new business loans to, and deposits from, households:
In June 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 remained basically unchanged at 5.36%: the ‘interest rate effect’ was negative (- 11 basis points), while the ‘weight effect’ was positive (13 basis points). The interest rates associated to new borrowing by households remained basically unchanged 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 remained basically unchanged at 3.26%. Moreover, the interest rate on loans with an initial rate fixation period of over ten years remained unchanged at 4.18% in June 2011. Rates agreed on new deposits from households increased. The interest rate on deposits with an agreed maturity of up to one year rose by 6 basis points to stand at 2.58%. Moreover, the interest rate on deposits redeemable at three months’ notice remained basically unchanged at 1.70% in June 2011.
