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Interest rates
16.05.2017
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 March 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 decreased by 3 basis points on a monthly basis to reach 1.65% in March 2017. The volume of these newly granted loans has increased by 74 million euros on a monthly basis to reach 234 million euros during last reference period. On a yearly basis, the interest rate has declined by 8 basis points whereas the volume of newly granted loans has increased by 16 million euros.
The fixed[3] interest rate on mortgage loans granted to households has increased by 6 basis points on a monthly basis to reach 1.83% during March 2017. The volume of these newly granted loans has increased by 36 million euros on a monthly basis and has consequently amounted to 277 million euros during the last reference period. On a yearly basis, this interest rate has increased by 3 basis points whereas the volume of newly granted loans has increased by 72 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 remained unchanged at 1.29% compared to February 2017 due to the extension of favorable lending conditions for the traditional car festival. The volume of these newly granted loans has therefore amounted to 84 million euros during March 2017. On a yearly basis, this interest rate has decreased by 61 basis points and the volume of newly granted loans has increased by 26 million euros.
The interest rate on households’ fixed-term deposits that have an initial maturity below or equal to 1 year has remained unchanged at 32 basis points.
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 3 basis points compared to February 2017 to reach 1.76% in March 2017. The volume of newly granted loans has increased by 139 million euros, reaching 848 million euros during the last reference period. On a yearly basis, this interest rate has decreased by 4 basis points whereas the volume of newly granted loans has increased by 27 million euros.
The variable2 interest rate on loans above 1 million euros granted to NFCs has decreased by 2 basis points to reach 1.18% during March 2017. The volume of these newly granted loans has increased by 2 347 million euros on a monthly basis and has consequently reached 7 468 million euros. On a yearly basis, this interest rate has decreased by 14 basis points and the volume of newly granted loans has decreased by 18 million euros.
The interest rate on fixed-term deposits of NFCs with an initial maturity below or equal to 1 year has barely changed, going from -19 basis points during February 2017 to -22 basis points during March 2017.
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, because of methodological reasons linked to the identification of reporting agents.
