BoG: Loan interest rates down in February

The interest rate spread between bank loan and deposit rates fell to 4.21 percentage points in February from 4.54 points in January, the Bank of Greece said on Friday.

The central bank, in a monthly report, said that the overall weighted average interest rate on new deposits remained almost unchanged in February, while the average interest rate on new loans decreased.

The overall weighted average interest rate on all new deposits stood at 0.31 pct, almost unchanged against the previous month. In particular, the average interest rate on overnight deposits placed by households remained unchanged at 0.09 pct. The average interest rates on overnight deposits placed by non-financial corporations remained almost unchanged at 0.15 pct. The average interest rate on deposits from households with an agreed maturity of up to one year also remained almost unchanged at 0.67 pct.

The overall weighted average interest rate on all new loans to households and corporations decreased by 34 basis points to 4.52 pct against the previous month.

More specifically, the Bank of Greece said the average interest rate on consumer loans without a defined maturity remained almost unchanged at 14.54 pct. The average interest rate on consumer loans with a defined maturity at a floating rate decreased by 14 basis points to 7.56 pct. The average interest rate on corporate loans without a defined maturity and the rate on loans to sole proprietors remained almost unchanged at 5.67 pct and 7.28 pct, respectively. The average interest rate on corporate loans with a defined maturity at a floating rate decreased by 72 basis points to 4.08 pct. In February 2017, the overall weighted average interest rate on the outstanding amounts of all deposits remained unchanged, while the overall weighted average interest rate on all loans increased. The spread between loan and deposit rates increased to 4.45 percentage points, from 4.35 points in the previous month. In more detail, the overall weighted average interest rate on the outstanding amounts of all deposits remained unchanged at 0.32 pct, while the corresponding rate on loans increased by 10 basis points to 4.77 pct.