In the quarterly period up to October 2023, the statistical indicators of interest rates^[1] of credit institutions on their main sources of funds in euros continued their upward trend started in the second half of 2022.

As regards credit institutions’ main sources of funds from the household sector, the average of interest rates on savings deposits stood at 0.16% in October 2023, down by 0.01 percentage point from October last year. The averages of interest rates on short-term and long-term time deposits were much higher in October 2023 compared to their values from October 2022, with a more pronounced growth in short-term time deposits. In October 2023, the average of interest rates reached 2.44% for short-term time deposits and 1.40% for long-term time deposits. This is an increase of 2.32 and 1.24 percentage points from October 2022 for short-term and long-term time deposits respectively. Similar average interest rate levels were last recorded in September 2013 for short-term time deposits and in June 2016 for long-term time deposits.

The averages of interest rates on time deposits of non-financial corporations reached 3.28% for short-term deposits and 2.81% for long-term deposits in October 2023. Short-term and long-term deposits recorded a growth of 2.99 and 2.17 percentage points respectively relative to October 2022. Short-term time deposits saw a particularly swift growth over the past year.

Statistical indicators of interest rates of credit institutions on the most important types of euro loans granted to households and non-financial corporations mostly trended up from mid-2022, with the exception of credit card loans, which recorded a years-long decline in the averages of interest rates.

As for the main categories of household loans, the highest average of interest rates in October 2023 of 5.90% was recorded for general-purpose loans and other loans. The lowest average of interest rates in October 2023 of 3.60% was seen in housing loans, thus continuing its upward trend started in the second quarter of 2022. The average of interest rates on loans in the form of transaction account overdrafts stood at 5.51% in October 2023, while for credit card loans the average of interest rates in the same month was 4.62%.

As regards the main categories of loans to non-financial corporations, the averages of interest rates on short-term and long-term loans continued their upward trend in October 2023. In October 2023, the averages of interest rates on short-term and long-term loans to non-financial corporations were 4.87% and 5.42% respectively. On a quarterly basis, this is a moderate growth of 0.51 and 0.09 percentage points for short-term and long-term loans respectively. On the other hand, their growth has been more pronounced on an annual basis and stood at 2.66 and 2.42 percentage points for short-term and long-term loans respectively.

Statistical time series: Credit institutions’ interest rates

1. Statistical indicators of interest rates are calculated as weighted monthly averages of agreed (nominal) interest rates on new deposit and loan contracts between credit institutions and their clients from the household sector (citizens and non-profit organisations) and the non-financial corporate sector (corporations outside the financial sector and the government sector) in a given month. New contracts include all contracts that specify for the first time the interest rate, and all renegotiations of the terms and conditions of the existing contracts. The weights used in the calculation are contracted amounts of newly received deposits and newly granted loans, with the exception of transaction accounts and demand deposits as well as transaction account overdrafts and credit card loans, which are assumed to be contractually renewed each month, but in indefinite amounts; for this reason, the weights used are their corresponding book balances at the end of a month. Indicators that are being calculated differ according to the instrument, maturity and institutional sector to which deposits and loans relate. As of January 2023, data refer only to the euro. For data before 2023, a kuna loan/deposit indexed to euro is also considered to be a euro loan/deposit (except for savings deposits, transaction account overdrafts and credit card loans where all currencies are included). ↑