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Statistical Press Release – Banking interest rates on new loans and deposits – August 2019

Today, Banco de Portugal publishes statistics, in Table A.10 of the Statistical Bulletin and in BPstat, on banking interest rates on new loans and deposits of non-financial corporations and households for August 2019.

Interest rates on new loans 

In August the average interest rate on new loans granted to non-financial corporations was 2.15% (2.23% in July), reaching a new historical low. 

The interest rate on operations above €1 million stood at 1.63% (Chart 1) and the interest rate on operations below €1 million at 2.62%, widening the gap between the two rates compared with the previous month. 

The average interest rate on new housing loans to households decreased by 22 basis points (b.p.) to 1.04% (Chart 2), also a new historical low. This decrease has essentially been caused by interest rate developments due to the renegotiation of the terms and conditions of pre-existing credit agreements. The average interest rates on loans for consumption and other purposes were 7.02% and 4.27% respectively.

The volumes of new loans for housing, consumption and other purposes totalled €975 million, €466 million and €186 million respectively.

Interest rates on new deposits

In August 2019 the average interest rate on new deposits with a maturity of up to one year of non-financial corporations stood at 0.10%, declining by 2 b.p. from the previous month (Chart 3). The euro area average interest rate was negative for the first time, standing at -0.05%.

In the case of households, the average interest rate on new deposits with a maturity of up to one year dropped to a new historical low of 0.10% (Chart 4).

Next update: 12 Nov. 2019