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Interest rates
20.12.2019
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 loan and deposit operations have on average evolved as follows in October 2019.
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 remained relatively stable on a monthly basis to reach 1.44% in October 2019 whereas the volume of these newly granted loans has increased by 38 million euros to reach 279 million euros. On a yearly basis, the interest rate has decreased by 4 basis points and the volume of newly granted loans has increased by 16 million euros.
The fixed[3] interest rate on mortgage loans granted to households has decreased by 8 basis points on a monthly basis to reach 1.32% in October 2019. The volume of these newly granted loans has increased by 26 million euros on a monthly basis and has consequently amounted to 492 million euros during the last reference period. On a yearly basis, this interest rate has decreased by 59 basis points whereas the volume of newly granted loans has increased by 154 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 decreased by 24 basis points on a monthly basis to reach 2.29% in October 2019 whereas the volume of newly granted loans has increased by 7 million euros to reach 32 million euros. On a yearly basis, the interest rate has increased by 6 basis points whereas the volume of new lending has remained unchanged.
The interest rate on households’ fixed-term deposits that have an initial maturity below or equal to 1 year has decreased by 40 basis points on a monthly basis to reach 3 basis points during October 2019.
Representative interest rates on new contracts2 – loans and deposits – concluded with NFCs
The variable3 interest rate on loans below or equal to 1 million euros granted to NFCs has increased by 5 basis points on a monthly basis to reach 1.63% in October 2019. The volume of newly granted loans has decreased by 10 million euros on a monthly basis, reaching 862 million euros in October 2019. On a yearly basis, this interest rate has decreased by 7 basis points and the volume of newly granted loans has decreased by 3 million euros.
The variable3 interest rate on loans above 1 million euros granted to NFCs has increased by 15 basis points on a monthly basis to reach 1.11% during the last reference period, whereas the new business volume has decreased by 1 032 million euros to reach 4 745 million euros. On a yearly basis, this interest rate has decreased by 30 basis points, whereas the volume of newly granted loans has decreased by 1 432 million euros.
The interest rate on fixed-term deposits of NFCs with an initial maturity below or equal to 1 year has reached -20 basis points in October from -27 basis points in September 2019.
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 since February 2009 only because of methodological reasons linked to the identification of reporting agents.
