Bank of Greece: Interest rate spread up in December

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The interest rate spread between loan and deposit rates increased to 4.62 percentage points in December, as the overall weighted average interest rate on new deposits remained unchanged, while the interest rate on new loans increased, the Bank of Greece said on Thursday.

The central bank, in a report, said that the overall weighted average interest rate on all new deposits remained unchanged at 0.29 pct. In particular, the average interest rate on overnight deposits placed by households remained unchanged at 0.10 pct, while the average interest rate on overnight deposits placed by non-financial corporations remained almost unchanged at 0.16 pct. The average interest rate on deposits from households with an agreed maturity of up to one year also remained unchanged at 0.60 pct.

The overall weighted average interest rate on all new loans to households and corporations increased by 12 basis points to 4.91 pct.

More specifically, the average interest rate on consumer loans without a defined maturity increased by 5 basis points to 14.56 pct. The average interest rate on consumer loans with a defined maturity at a floating rate decreased by 94 basis points to 7.64 pct. The average interest rate on corporate loans without a defined maturity remained almost unchanged at 5.35 pct. The average interest rate on corporate loans with a defined maturity at a floating rate increased by 18 basis points to 4.41 pct. Finally, the average interest rate on housing loans at a floating rate increased by 32 basis points to 2.99 pct.

In December 2017, the overall weighted average interest rate on the outstanding amounts of all deposits remained unchanged, while the corresponding rate on all loans decreased marginally. The spread between loan and deposit rates stood at 4.17 percentage points from 4.20 points in the previous month.

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