Euro area bank interest rate statistics: March 2024 (2024)

  • PRESS RELEASE

3 May 2024

  • Composite cost-of-borrowing indicator for new loans to corporations increased by 4 basis points to 5.18%, driven by interest rate effect; indicator for new loans to households for house purchase decreased by 5 basis points to 3.80%, driven by interest rate effect
  • Composite interest rate fornew deposits with agreed maturity from corporationsincreased by 5 basis points to 3.68%, driven by interest rate effect; interest rate for overnight depositsfrom corporations broadly unchanged at 0.90%
  • Composite interest rate for new deposits with agreed maturity from householdsand for overnight depositsfrom households broadly unchanged at 3.16% and 0.39%, respectively

Bank interest rates for corporations

Chart 1

Bank interest rates on new loans to, and deposits from, euro area corporations

(percentages per annum)

Euro area bank interest rate statistics: March 2024 (1)

Data for cost of borrowing and deposit interest rates for corporations (Chart 1)

The composite cost-of-borrowing indicator, which combines interest rates on all loans to corporations, increased in March 2024. The interest rate on new loans of over €1 million with a floating rate and an initial rate fixation period of up to three months increased by 6 basis points to 5.16%, driven by both the interest rate and the weight effects. The rate on new loans of the same size with an initial rate fixation period of over three months and up to one year rose by 34 basis points to 5.17%, mainly driven by the interest rate effect. The interest rate on new loans of over €1 million with an initial rate fixation period of over ten years increased by 5 basis points to 3.96%, driven by the interest rate effect. In the case of new loans of up to €250,000 with a floating rate and an initial rate fixation period of up to three months, the average rate charged fell by 5 basis points to 5.39%.
As regards new deposit agreements, the interest rate on deposits from corporations with an agreed maturity of up to one year rose by 5 basis points to 3.68% in March 2024. The interest rate on overnight deposits from corporations stayed almost constant at 0.90%.
The interest rate on new loans to sole proprietors and unincorporated partnerships with a floating rate and an initial rate fixation period of up to one year remained broadly unchanged at 5.62%.

Table 1

Bank interest rates for corporations

Euro area bank interest rate statistics: March 2024 (2)

Data for bank interest rates for corporations (Table 1)

Bank interest rates for households

Chart 2

Bank interest rates on new loans to, and deposits from, euro area households

(percentages per annum)Euro area bank interest rate statistics: March 2024 (3)

Data for cost of borrowing and deposit interest rate for households (Chart 2)

The composite cost-of-borrowing indicator, which combines interest rates on all loans to households for house purchase, decreased in March 2024. The interest rate on loans for house purchase with a floating rate and an initial rate fixation period of up to one year decreased by 5 basis points to 4.79%, driven by both the interest rate and the weight effects. The rate on housing loans with an initial rate fixation period of over one and up to five years stayed almost constant at 4.00%. The interest rate on loans for house purchase with an initial rate fixation period of over five and up to ten years decreased by 7 basis points to 3.57%, driven by the interest rate effect. The rate on housing loans with an initial rate fixation period of over ten years fell by 5 basis points to 3.44%. In the same period the interest rate on new loans to households for consumption decreased by 9 basis points to 7.82%, driven by the interest rate effect.
As regards new deposits from households, the interest rate on deposits with an agreed maturity of up to one year remained broadly unchanged at 3.19%. The rate on deposits redeemable at three months' notice stayed almost constant at 1.71%. The interest rate on overnight deposits from households remained broadly unchanged at 0.39%.

Table 2

Bank interest rates for households

Euro area bank interest rate statistics: March 2024 (4)

Data for bank interest rates for households (Table 2)

Further information

The data in Tables 1 and 2 can be visualised for individual euro area countries on the bank interest rate statistics dashboard. Additionally, tables containing further breakdowns of bank interest rate statistics, including the composite cost-of-borrowing indicators for all euro area countries, are available from the ECB Data Portal. The full set of bank interest rate statistics for both the euro area and individual countries can be downloaded from ECB Data Portal. More information, including the release calendar, is available under "Bank interest rates" in the statistics section of the ECB's website.

For media queries, please contact Philippe Rispal, tel.: +49 69 1344 5482

Notes:

  • In this press release "corporations" refers to non-financial corporations (sector S.11 in the European System of Accounts 2010, or ESA 2010), "households" refers to households and non-profit institutions serving households (ESA 2010 sectors S.14 and S.15) and "banks" refers to monetary financial institutions except central banks and money market funds (ESA 2010 sector S.122).
  • The composite cost-of-borrowing indicators are described in the article entitled "Assessing the retail bank interest rate pass-through in the euro area at times of financial fragmentation" in the August 2013 issue of the ECB's Monthly Bulletin (see Box 1). For these indicators, a weighting scheme based on the 24-month moving averages of new business volumes has been applied, in order to filter out excessive monthly volatility. For this reason the developments in the composite cost of borrowing indicators in both tables cannot be explained by the month-on-month changes in the displayed subcomponents. Furthermore, the table on bank interest rates for corporations presents a subset of the series used in the calculation of the cost of borrowing indicator.
  • Interest rates on new business are weighted by the size of the individual agreements. This is done both by the reporting agents and when the national and euro area averages are computed. Thus changes in average euro area interest rates for new business reflect, in addition to changes in interest rates, changes in the weights of individual countries' new business for the instrument categories concerned. The "interest rate effect" and the "weight effect" presented in this press release are derived from the Bennet index, which allows month-on-month developments in euro area aggregate rates resulting from changes in individual country rates (the "interest rate effect") to be disentangled from those caused by changes in the weights of individual countries' contributions (the "weight effect"). Owing to rounding, the combined "interest rate effect" and the "weight effect" may not add up to the month-on-month developments in euro area aggregate rates.
  • In addition to monthly euro area bank interest rate statistics for March 2024, this press release incorporates revisions to data for previous periods. Hyperlinks in the main body of the press release lead to data that may change with subsequent releases as a result of revisions. Unless otherwise indicated, these euro area statistics cover the EU Member States that had adopted the euro at the time to which the data relate.
  • As of reference period December 2014, the sector classification applied to bank interest rates statistics is based on the European System of Accounts 2010 (ESA 2010). In accordance with the ESA 2010 classification and as opposed to ESA 95, the non-financial corporations sector (S.11) now excludes holding companies not engaged in management and similar captive financial institutions.

CONTACT

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Euro area bank interest rate statistics: March 2024 (2024)

FAQs

Euro area bank interest rate statistics: March 2024? ›

As regards new deposit agreements, the interest rate on deposits from corporations with an agreed maturity of up to one year rose by 5 basis points to 3.68% in March 2024. The interest rate on overnight deposits from corporations stayed almost constant at 0.90%.

What is the ECB current interest rate? ›

Fixed Rate Tender: 4.50%

Will interest rates go down in 2024? ›

But until the Fed sees evidence of slowing economic growth, interest rates will stay higher for longer. The 30-year fixed mortgage rate is expected to fall to the mid-6% range through the end of 2024, potentially dipping into high-5% territory by the end of 2025.

What is the benchmark interest rate in the euro area? ›

The benchmark interest rate In the Euro Area was last recorded at 4.50 percent. Interest Rate in Euro Area is expected to be 4.25 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations.

What is the ECB rate forecast for 2024? ›

Forecasters expected the interest rate on the ECB's main refinancing operations (MROs) to fall to 4.25% in the second quarter of 2024, reaching 3.5% by the fourth quarter of the year and declining further to 3% in 2025 and 2.5% in 2026.

What is the interest rate in the eurozone? ›

Eurozone (European Central Bank)

At its 11 April 2024 meeting, the ECB left its main interest rates unchanged, including the deposit rate at 4.00%. The ECB raised rates by 4.5 percentage points from July 2022 to September 2023.

What is the interest prediction for 2024? ›

Also, mortgage rates are still much higher than we've been used to in recent years. In May 2024, the average 2 year fixed rate is 4.74%. While this is a significant drop from its July 2023 peak of 6.86%, it's still much higher than December 2021 when was 2.34%. Find out more in our guide to the Best mortgage rates.

Where will interest rates be in 2025? ›

The average 30-year fixed mortgage rate as of Thursday was 6.99%. By the final quarter of 2025, Fannie Mae expects that to slide to 6.0%.

Are CD rates going up or down in 2024? ›

"CD rates will most likely drop and drop substantially in 2024," says Robert Johnson, professor of finance at Heider College of Business at Creighton University. "The biggest reason is the likelihood of Federal Reserve rate cuts later this year."

What is the interest rate in the euro area in 2024? ›

As regards new deposit agreements, the interest rate on deposits from corporations with an agreed maturity of up to one year stayed almost constant at 3.69% in January 2024. The interest rate on overnight deposits from corporations rose by 6 basis points to 0.89%.

Who sets euro interest rates? ›

The Governing Council of the ECB sets the key interest rates for the euro area. These are as follows: The interest rate on the main refinancing operations, which is the rate banks pay when they borrow money from the ECB for one week.

What is the ECB rate outlook? ›

The updated ECB staff projections now foresee inflation to average 2.3% in 2024, down from 2.7% in the previous estimate, 2.0% in 2025, and 1.9% in 2026. Therefore, according to the ECB estimates, inflation is expected not only to reach the 2% target next year but also to slightly fall below that threshold in 2026.

What is the decision on the ECB interest rates? ›

The European Central Bank (ECB) left its key interest rate unchanged for the fifth time in a row at Thursday's meeting. The interest rate decision had been widely expected. A recent Reuters poll had 90% of economists predicting no first interest rate cut before June.

Why does ECB have three interest rates? ›

As their names suggest, the three key ECB rates are monetary policy instruments used by the ECB to have an impact on the granting of loans and to regulate inflation in the Eurozone. The main role of the ECB is not to lend and banks only turn to the ECB when they don't find any liquidity in the interbank market.

What is a good refinance rate? ›

Today's mortgage and refinance interest rates
ProductInterest RateAPR
10-1 ARM7.43%8.11%
30-Year Fixed Rate FHA7.25%7.30%
30-Year Fixed Rate VA7.69%7.72%
30-Year Fixed Rate Jumbo7.41%7.46%
5 more rows

What is the ECB exchange rate? ›

The ECB rate is the foreign exchange reference rate published by the European Central Bank. The bank sets out the exchange rate for European currencies against the euro (EUR) at 16:00 Central European time, every working day.

What is the market interest rate today? ›

Mortgage Rates
Rate (National Average)Today1 Month
30 Year Fixed7.38%7.29%
15 Year Fixed6.90%6.68%
30 Year Fixed Refi7.48%7.31%
15 Year Fixed Refi6.97%6.74%
3 more rows

What is the current base rate? ›

The current base rate is 5.25%.

What is the current Euribor rate? ›

Euribor Current and historical Euribor interest rates
05-03-202405-02-2024
Euribor 1 week3.893 %3.858 %
Euribor 1 month3.865 %3.877 %
Euribor 3 months3.827 %3.853 %
Euribor 6 months3.802 %3.828 %
1 more row

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