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Statistical Press Release – Banking interest rates on new loans and deposits – May 2020

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 May 2020.

Interest rates on new loans

In May, the average interest rate on new loans granted to non-financial corporations decreased by 51 basis points (b.p.) to a new historical low of 1.56%. Credit lines associated with the COVID-19 pandemic may have contributed to this decrease.

The interest rate on operations above €1 million stood at 1.46% (1.80% in April) (Chart 1) and the interest rate on operations below €1 million at 1.60% (2.29% in April), new historical lows. The gap between the two rates narrowed from the previous month, also reaching a new historical low.

The average interest rate on new loans to households for house purchase rose by 8 b.p., to 1.11% (Chart 2). The average interest rate on loans for consumption stood at 6.63%, while the interest rate on loans for other purposes reached a new historical low of 2.67%. The rates for April were 6.03% and 3.10%, respectively.

The volumes of new loans for house purchase, consumption and other purposes totalled €792 million, €232 million and €157 million respectively (Chart 3).

Interest rates on new deposits

In May 2020, the average interest rate on new deposits with a maturity of up to one year of non-financial corporations stood at 0.05%, decreasing by 1 b.p. from the previous month (Chart 4).

In the case of households, the average interest rate on new deposits remained unchanged at 0.07% (Chart 5).

Next update: 31 Jul. 2020