Bank of Greece: Interest rate spread between loan and deposit rates up in April

The interest rate spread between loan and deposit rates increased to 4.43 percentage points in April, from 4.16 points in the previous month, as the overall weighted average interest rate on new deposits remained unchanged, while the average interest rate on new loans increased, the Bank of Greece said on Friday.

The central bank, in a monthly report, said that the overall weighted average interest rate on all new deposits stood at 0.31 pct, unchanged from the previous month. In particular, the average interest rate on overnight deposits placed by households remained unchanged at 0.09 pct, while the average interest rate on overnight deposits placed by non-financial corporations remained almost unchanged, at 0.16 pct. The average interest rate on deposits from households with an agreed maturity of up to 1 year remained also almost unchanged, at 0.68 pct.

The overall weighted average interest rate on all new loans to households and corporations increased by 27 basis points to 4.74 pct, from the previous month.

More specifically, the average interest rate on consumer loans without a defined maturity remained almost unchanged at 14.52 pct. The average interest rate on consumer loans with a defined maturity at a floating rate increased by 147 basis points to 8.05 pct.

The average interest rates on corporate loans and on loans to sole proprietors without a defined maturity remained almost unchanged at 5.58 pct and 7.24 pct, respectively. Finally, the average interest rate on housing loans at a floating rate decreased by 7 basis points to 2.69 pct.

In April 2017, the overall weighted average interest rates on the outstanding amounts of all deposits
and loans remained almost unchanged. The spread between loan and deposit rates stood at 4.39 percentage points, almost unchanged from the previous month.