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Interest rates
08.02.2016
The Banque centrale du Luxembourg (BCL) informs that, based on preliminary data, the main interest rates applied by Luxembourg’s credit institutions to households and euro area non-financial corporations (NFCs) for their loans and deposit operations have on average evolved as follows in December 2015.
Representative interest rates on new contracts[1] – loans and deposits – concluded with households
On a monthly basis, the variable[2] interest rate on mortgage loans granted to households has slightly decreased on a monthly basis, going from 1.80% in November 2015 to 1.76% in December 2015. The volume of these newly granted loans has increased by 28 million euros compared to November 2015 and has consequently reached 239 million euros in December 2015. On a yearly basis, this interest rate has declined by 8 basis points, whereas the volume of newly granted loans has decreased by 99 million euros.
The fixed[3] interest rate on mortgage loans granted to households has decreased by 5 basis points on a monthly basis and has reached 1.93% in December 2015. The volume of these newly granted loans has amounted to 220 million euros, an increase of 9 million euros compared to the previous month. Compared to the month of December 2014, this interest rate has decreased by 18 basis points and the volume of newly granted loans has increased by 23 million euros.
Interest rates on consumer loans that have an initial fixation period above 1 year and below or equal to 5 years, remained relatively stable on a monthly basis, going from 3.84% in November 2015 to 3.82% in December 2015. The volume of these newly granted loans has decreased by 2 million euros compared to November 2015 and has reached 17 million euros in December 2015. On a yearly basis, this interest rate has increased by 3 basis points and the volume of newly granted loans has decreased by 8 million euros.
The interest rate on households’ fixed-term deposits that have an initial maturity below or equal to 1 year, has stabilised in December 2015, reaching 0.51%, after 0.52% in the preceding month. On a yearly basis, this interest rate has increased by 38 basis points.
Representative interest rates on new contracts1 – loans and deposits - concluded with non-financial corporations (NFCs)
The variable2 interest rate on loans below or equal to 1 million euros granted to NFCs remained unchanged at 1.81% in December 2015. The volume of newly granted loans has reached 977 million euros, an increase of 120 million euros compared to the month of November 2015. On a yearly basis, this interest rate has decreased by 16 basis points and the volume of granted loans has decreased by 3 million euros.
The variable2 interest rate on loans above 1 million euros granted to NFCs has decreased by 5 basis points to 1.01% in December 2015. The volume of these newly granted loans has reached 12 446 million euros, an increase of 2 749 million euros compared to the preceding month. Compared to December 2014, this interest rate has decreased by 55 basis points and the volume of newly granted loans has increased by 3 973 million euros.
The interest rate on fixed-term deposits of NFCs with an initial maturity below or equal to 1 year has remained negative, reaching -0.10% in December 2015. However, this evolution must be interpreted with caution because the weightings of individual contracts are very volatile for this kind of financial instruments.
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/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 and the non-financial corporation and the reporting agent. New contracts include all financial contracts which mention for the first time the interest 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.
