Interest rates of monetary financial institutions in the Czech Republic

November 2021

Interest rate on new business

Interest rates on new household deposits recorded the largest change for deposits maturing in November. With regard to non-financial corporations, the rate of deposits at agreed maturity has seen the largest variation.

The interest rate on household deposits at agreed maturity rose 0.93 percentage point to 2.05%. The interest rate on demand deposits rose to 0.20%. The current account deposit rate remained stable at 0.05%. The interest rate on deposits redeemable at notice increased to 1.29% (the only rate to include, besides the household sector, similar deposits from non-financial corporations, which are negligible in this category).

The rate on deposits of non-financial corporations with agreed maturity rose by 0.96 percentage point to 2.08%. The interest rate on demand deposits rose to 0.18%. The interest rate on current account deposits also increased, reaching 0.15%. Deposits with an agreed maturity of up to one year (which generally represent 100% of all deposits with an agreed maturity in the case of this sector) were remunerated at a higher rate (2.08%).

Figure 1 – Commercial bank interest rates on CZK deposits held by Czech residents – new business

Among interest rates on new loans to households, the largest variation was recorded for overdrafts in November. Interest rates on loans to non-financial corporations recorded the largest change for loans over CZK 30 million.

The overall interest rate on consumer loans, home loans and other loans amounted to 3.65%. The interest rate on consumer loans increased month on month to 7.68%. The home loan rate recovered to 2.71%. The interest rate on loans to the construction company also fell slightly to 3.93%. The interest rate on mortgages rose to 2.63%, up 0.59 percentage points from the previous year. The interest rate on other loans increased to 3.44%. The interest rate on credit cards fell to 17.22%. The interest rate on overdrafts and revolving credits was 12.57%. The interest rate on overdrafts stood at 15.48%, up 0.53 percentage point.

Interest rates on new loans to non-financial corporations (excluding overdrafts, revolving credits and credit cards) increased to 4.10%. The rate on loans up to CZK 7.5 million was 4.46%. The rate for loans over CZK 7.5 million and up to CZK 30 million has increased to 4.03% and the rate for new loans over CZK 30 million has increased by 1.30 percentage points to reach 4.08%. The interest rate on overdrafts, revolving credits and credit card loans also increased to 4.52%. The interest rate on overdrafts remained unchanged at 4.75%.

Figure 2 – Commercial bank interest rates on CZK loans granted to Czech residents – new contracts

Interest rate on outstanding amounts

Average interest rates on household deposits only changed by a few tenths of a percentage point in November, while rates on deposits from non-financial corporations increased more significantly.

Average changes in interest rates on outstanding household loans were only a few basis points in November. Interest rates on outstanding loans to non-financial corporations have fluctuated more significantly.

The overall interest rate on loans to households remained unchanged at 3.26%. The interest rate on home loans remained at its July level of 2.40% (the rate on outstanding mortgage loans remaining stable at 2.26%). The rate of consumer loans fell to 8.22% and the rate of other loans fell to 3.44%.

The average interest rate on loans to non-financial corporations was 3.84%. The rate for loans with a term of one year or less rose to 4.46%. The rate for loans over one year and up to five years has risen to 4.42%. The rate for loans for more than five years rose to 3.36%.

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