On 4 February 2025, the European Central Bank (ECB) released data indicating a decrease in bank interest rates for both corporations and households in the euro area for December 2024. The composite cost-of-borrowing indicator for new loans to corporations fell by 16 basis points to 4.36%, while the indicator for new loans to households for house purchases decreased by 8 basis points to 3.39%.

For corporations, the interest rate on new loans exceeding €1 million with a floating rate and an initial fixation period of up to three months decreased by 11 basis points to 4.31%.

The rate for new loans of the same amount, with an initial fixation period of over three months and up to one year, fell by 14 basis points to 4.06%.

Additionally, the interest rate on new loans over €1 million with an initial rate fixation period of more than ten years decreased by 6 basis points to 3.42%.

A notable reduction was also seen in loans of up to €250,000, where the average rate charged for floating rate loans with an initial fixation period of up to three months fell by 17 basis points to 4.63%.

In terms of deposits from corporations, the interest rate on deposits with an agreed maturity of up to one year decreased by 13 basis points to 2.80%, and overnight deposits saw a decline of 4 basis points to 0.77%.

The interest rate for new loans to sole proprietors and unincorporated partnerships with a floating rate and an initial fixation period of up to one year experienced a larger decrease of 29 basis points, settling at 4.63%.

For households, the composite cost-of-borrowing indicator for loans aimed at house purchases also saw a decline.

The interest rate on loans with a floating rate and an initial fixation period of up to one year decreased by 12 basis points to 4.15%.

Rates on housing loans with initial fixation periods over one and up to five years fell by 5 basis points to 3.57%, while loans with fixation periods over five up to ten years decreased by 7 basis points to 3.36%.

Further, the rate on loans with an initial fixation period exceeding ten years fell by 7 basis points to 3.09%.

Loans to households for consumption saw a significant drop of 22 basis points, reaching 7.36%.

Regarding deposits from households, the interest rate on deposits with an agreed maturity of up to one year decreased by 16 basis points to 2.45%.

Rates on deposits redeemable at three months' notice remained unchanged at 1.74%, and overnight deposits from households stayed constant at 0.35%.

These interest rate changes reflect ongoing adjustments in the financial landscape of the euro area and come amid broader economic considerations.

The data is part of a comprehensive set of bank interest rate statistics maintained by the ECB, which can be visualized for individual euro area countries via the ECB's data portal.