Euro Area Bank Interest Rates Show Mixed Trends in January 2024

BySilvia Orfeo

03/04/2024
ECB seen from Goetheturm Frankfurt (Roman Kessler)ECB seen from Goetheturm Frankfurt (Roman Kessler)ECB seen from Goetheturm Frankfurt (Roman Kessler)
  • Corporate Loan Rates Stable at 5.22%
  • Household Loan Rates Drop to 3.87%

Frankfurt, Germany — The latest bank interest rate statistics for the Euro area in January 2024 revealed a mixed landscape Monday. The composite cost-of-borrowing indicator for new loans to corporations remained broadly unchanged at 5.22%. In contrast, the indicator for new loans to households for house purchases saw a decrease of 10 basis points, settling at 3.87%, primarily driven by an interest rate effect, the European Central Bank said.

Additionally, the composite interest rate for new deposits with agreed maturity from corporations decreased by 4 basis points to 3.68%, influenced by both interest rate and weight effects. Conversely, the interest rate for overnight deposits from corporations increased by 6 basis points to 0.89%, attributed to the interest rate effect.

For households, the composite interest rate for new deposits with agreed maturity decreased by 9 basis points to 3.20%, driven by the interest rate effect, while the rate for overnight deposits remained broadly unchanged at 0.38%.

These statistics provide crucial insights into the current financial landscape in the Euro area, reflecting varying trends across different banking segments.

BySilvia Orfeo

Silvia Orfeo is a Sr. Politics and Economics Reporter at Nobot.News

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