Euro Area Bank Interest Rates Show Decline in March 2025
New data reveals significant decreases in borrowing and deposit rates for corporations and households.
In March 2025, the euro area observed a notable decline in bank interest rates for both corporations and households.
The composite cost-of-borrowing indicator for new loans to corporations decreased by 19 basis points, settling at 3.93%.
In contrast, the indicator for new loans to households for house purchases remained largely unchanged at 3.32%.
The interest rate on new loans exceeding €1 million, with floating rates and initial rate fixation periods of up to three months, fell by 31 basis points to 3.67%.
Loans of the same amount with initial fixation periods exceeding three months and up to one year maintained a stable rate at 3.78%.
However, loans exceeding €1 million with an initial fixation period of over ten years saw an increase of 13 basis points, reaching 3.57%.
Similarly, interest for new loans up to €250,000 with floating rates and initial rate fixation periods of up to three months dropped by 35 basis points to 4.02%.
In terms of deposits, the interest rate on deposits from corporations with agreed maturity up to one year decreased by 18 basis points to 2.32%.
Overnight deposits from corporations also experienced a decline, dropping by 5 basis points to 0.67%.
The interest rate for loans to sole proprietors and unincorporated partnerships with floating rates and an initial rate fixation period of up to one year decreased by 19 basis points, landing at 4.36%.
For households, the composite cost-of-borrowing indicator for house purchase loans remained broadly stable.
The interest rate for loans with floating rates and initial fixation periods of up to one year decreased by 8 basis points, reaching 3.92%.
Rates for housing loans with fixation periods between one and five years remained stable at 3.51%, while those for loans with fixation periods exceeding five years stayed constant at 3.36%.
The rate for loans with fixation periods of over ten years also remained unchanged at 3.10%.
New loans to households for consumption saw a minor decrease in interest rates, dropping by 7 basis points to 7.52%.
In deposits, the interest rate on household deposits with agreed maturity of up to one year fell by 10 basis points to 2.09%.
The rate for deposits redeemable at three months' notice remained stable at 1.50%, while overnight deposits continued at 0.31%.
These trends reflect the evolving landscape of borrowing and deposit costs in the euro area, influenced by broader economic conditions and monetary policies.
The composite cost-of-borrowing indicator for new loans to corporations decreased by 19 basis points, settling at 3.93%.
In contrast, the indicator for new loans to households for house purchases remained largely unchanged at 3.32%.
The interest rate on new loans exceeding €1 million, with floating rates and initial rate fixation periods of up to three months, fell by 31 basis points to 3.67%.
Loans of the same amount with initial fixation periods exceeding three months and up to one year maintained a stable rate at 3.78%.
However, loans exceeding €1 million with an initial fixation period of over ten years saw an increase of 13 basis points, reaching 3.57%.
Similarly, interest for new loans up to €250,000 with floating rates and initial rate fixation periods of up to three months dropped by 35 basis points to 4.02%.
In terms of deposits, the interest rate on deposits from corporations with agreed maturity up to one year decreased by 18 basis points to 2.32%.
Overnight deposits from corporations also experienced a decline, dropping by 5 basis points to 0.67%.
The interest rate for loans to sole proprietors and unincorporated partnerships with floating rates and an initial rate fixation period of up to one year decreased by 19 basis points, landing at 4.36%.
For households, the composite cost-of-borrowing indicator for house purchase loans remained broadly stable.
The interest rate for loans with floating rates and initial fixation periods of up to one year decreased by 8 basis points, reaching 3.92%.
Rates for housing loans with fixation periods between one and five years remained stable at 3.51%, while those for loans with fixation periods exceeding five years stayed constant at 3.36%.
The rate for loans with fixation periods of over ten years also remained unchanged at 3.10%.
New loans to households for consumption saw a minor decrease in interest rates, dropping by 7 basis points to 7.52%.
In deposits, the interest rate on household deposits with agreed maturity of up to one year fell by 10 basis points to 2.09%.
The rate for deposits redeemable at three months' notice remained stable at 1.50%, while overnight deposits continued at 0.31%.
These trends reflect the evolving landscape of borrowing and deposit costs in the euro area, influenced by broader economic conditions and monetary policies.
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