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Interest rates
08.02.2022
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 December 2021.
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 increased by 4 basis points on a monthly basis to reach 1.34% in December 2021 and the volume of these newly granted loans has increased by 35 million euros to reach 294 million euros. On a yearly basis, the interest rate has increased by 2 basis points whereas the volume of newly granted loans has decreased by 31 million euros.
The fixed[3] interest rate on mortgage loans granted to households increased by 3 basis points on a monthly basis to reach 1.37% in December 2021 while the volume of these newly granted loans has increased by 118 million euros to reach 567 million euros. On a yearly basis, this interest rate increased by 16 basis points whereas the volume of newly granted loans has decreased by 133 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 14 basis points on a monthly basis to reach 2.67% in December 2021 whereas the volume of newly granted loans has decreased by 5 million euros to reach 15 million euros. On a yearly basis, the interest rate has decreased by 6 basis points whereas the volume of new lending has decreased by 4 million euros.
The interest rate on households’ fixed-term deposits that have an initial maturity below or equal to 1 year has reached 10 basis points in December 2021 from 5 basis points during the previous reference period. On a yearly basis, this rate has increased by 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 decreased by 4 basis points to reach 1.30% for December 2021 and the volume of newly granted loans has increased by 55 million euros to reach 886 million euros. On a yearly basis, this interest rate has decreased by 16 basis points and the volume of newly granted loans has increased by 109 million euros.
The variable2 interest rate on loans above 1 million euros granted to NFCs has increased by 12 basis points on a monthly basis to reach 1.15% during the last reference period. The volume of newly granted loans has increased by 2 585 million euros to reach 6 157 million euros. On a yearly basis, this interest rate has increased by 3 basis points and the volume of newly granted loans has increased by 1 369 million euros.
The interest rate on fixed-term deposits of NFCs with an initial maturity below or equal to 1 year has decreased by 23 basis points on a monthly basis to reach -0.41% in December 2021. On a yearly basis, this interest rate has decreased by 14 basis points.
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 for methodological reasons linked to the identification of reporting agents.
