Commentary on MFI interest rates

February 2025

Interest rates on new business

Interest rates on new deposits of households recorded the largest change for deposits with agreed maturity in February. As regards non-financial corporations, interest rates on deposits in the same category saw the largest change.

The interest rate on household deposits with agreed maturity declined by 0.13 percentage point to 3.08%. The interest rate on overnight deposits edged up to 1.39%. The interest rate on current account deposits fell to 0.12%. The interest rate on deposits redeemable at notice decreased slightly to 1.76% (this rate is the only one to include, in addition to the household sector, also similar deposits of non-financial corporations, whose volumes are negligible in this category).

The rate on deposits of non-financial corporations with agreed maturity fell by 0.18 percentage point to 3.11%. The interest rate on overnight deposits decreased to 1.11%. The interest rate on current account deposits fell to 0.60%. Deposits with agreed maturity of up to one year (which as a rule account for 100% of all deposits with agreed maturity in the case of this sector) were remunerated at a lower rate (3.11%).

Chart 1 – Interest rates of commercial banks on CZK deposits held by Czech residents – new business
Interest rates of commercial banks on CZK deposits held by Czech residents – new business

Source: ARAD data series system

Within interest rates on new loans to households, consumer credit recorded the most significant change in February. Interest rates on loans to non-financial corporations saw the largest changes for loans of over CZK 7.5 million and up to CZK 30 million.

The overall interest rate on consumer credit, loans for house purchase and other loans fell to 5.74%. The interest rate on consumer credit decreased by 0.35 percentage point month on month to 8.28%. The interest rate on loans for house purchase fell to 4.75%. The interest rate on building society loans decreased to 5.54%. The interest rate on mortgage loans dropped to 4.68%, down by 0.40 percentage point on a year earlier. The interest rate on other loans picked up to 5.37%. The interest rate on overdrafts and revolving loans decreased to 14.70%. The interest rate on credit cards rose to 17.69%.

Interest rates on new loans to non-financial corporations (excluding overdrafts, revolving loans and credit cards) decreased to 5.55%. The rate on loans of up to CZK 7.5 million fell to 6.17%. The rate on loans of over CZK 7.5 million and up to CZK 30 million fell by 0.24 percentage point to 5.34% and the rate on new loans of over CZK 30 million decreased to 5.51%. The interest rate on overdrafts, revolving loans and credit card loans dropped to 5.76%. The interest rate on overdrafts declined to 5.85%.

Chart 2 – Interest rates of commercial banks on CZK loans provided to Czech residents – new business
Interest rates of commercial banks on CZK loans provided to Czech residents – new business

Source: ARAD data series system

Interest rates on outstanding amounts

The average interest rates on outstanding amounts of deposits of households changed by just a few tenths of a percentage point in February. Similar changes were recorded for non-financial corporations.

The average changes in interest rates on outstanding amounts of loans to households were just a few basis points in February. Interest rates on outstanding amounts of loans to non-financial corporations saw similar changes.

The overall interest rate on loans to households edged up to 4.43%. The interest rate on loans for house purchase also rose, reaching 3.61% (with the rate on outstanding amounts of mortgage loans picking up to 3.47%). The rate on consumer credit dropped slightly to 8.66% and the rate on other loans fell to 4.71%.

The average interest rate on loans to non-financial corporations fell to 5.38%. The rate on loans with maturity of up to one year fell to 5.75%. The rate on loans with maturity of over one year and up to five years declined to 6.18%. The rate on loans with maturity of over five years fell to 4.95%.

Notes: