Bank of Greece: Interest rate spread down in September

The overall weighted average interest rates on new deposits and new loans decreased in September, with the interest rate spread between loan and deposit rates falling to 4.32 percentage points, compared with 4.54 points in the previous month, the Bank of Greece said on Thursday.

The central bank, in a monthly report, said that the overall weighted average interest rate on all new deposits decreased by 4 basis points to 0.38 pct. In particular, the average interest rate on overnight deposits placed by households remained unchanged at 0.12 pct, while the corresponding rate on deposits by non-financial corporations stood at 0.18 pct, almost unchanged from the previous month. The average interest rate on deposits from households with an agreed maturity of up to 1 year decreased by 8 basis points to 0.79 pct.

The overall weighted average interest rate on all new loans to households and corporations decreased by 26 basis points from the previous month to 4.70 pct in September 2016.

More specifically, the average interest rate on consumer loans without a defined maturity remained almost unchanged at 14.42 pct. The average interest rate on consumer loans at a floating rate decreased by 40 basis points to 7.99 pct.

The average interest rate on corporate loans without a defined maturity stood at 5.81 pct, almost unchanged from the previous month. The corresponding rate on loans to sole proprietors marginally increased to 7.38 pct.

In September 2016, the overall weighted average interest rates on the outstanding amounts of all deposits and all loans remained almost unchanged. The spread between loan and deposit rates remained unchanged at 4.49 percentage points.