The composite cost-of-borrowing indicator for new loans to corporations[1] remained broadly unchanged at 1.55% in June 2019. The composite cost-of-borrowing indicator for new loans to households for house purchase[2] decreased by 5 basis points from the previous month to 1.67% in June 2019, driven by the interest rate effect. In the same month, the euro area composite interest rate for new deposits from corporations remained broadly unchanged at 0.09% and the one for new deposits from households showed no change at 0.36%. Bank interest rates for corporations Data for cost of borrowing and deposit interest rate for corporations The composite cost-of-borrowing indicator, which combines interest rates on all loans to corporations, remained broadly unchanged in June 2019. The interest rate on new loans of over €1 million with a floating rate and an initial rate fixation period of up to three months and on new loans of the same size with an initial rate fixation period of over ten years showed no change at 1.09% and at 1.56%, respectively. In the case of new loans of up to €250,000 with a floating rate and an initial rate fixation period of up to three months, the average rate charged decreased by 5 basis points to 2.13%. The month-on-month change was driven by the interest rate effect. As regards new deposit agreements, the interest rate on deposits from corporations with an agreed maturity of up to one year stayed approximately constant at 0.06% in June 2019. The interest rate on overnight deposits from corporations stayed constant at 0.03%. The interest rate on new loans to sole proprietors and unincorporated partnerships with a floating rate and an initial rate fixation period of up to one year remained broadly unchanged at 2.37%. Data for bank interest rates for corporations Bank interest rates for households Data for cost of borrowing and deposit interest rate for households The composite cost-of-borrowing indicator, which combines interest rates on all loans to households for house purchase, decreased in June 2019. The interest rate on loans for house purchase with a floating rate and an initial rate fixation period of up to one year remained broadly unchanged at 1.56%. The interest rate on housing loans with an initial rate fixation period of over ten years fell by 9 basis points to 1.65%, mainly driven by the interest rate effect. In the same period, the interest rate on new loans to households for consumption fell by 10 basis points to 5.64%. The month-on-month change was essentially due to developments in two euro area countries and it was mainly driven by the weight effect. As regards new deposits from households, the interest rate on deposits with an agreed maturity of up to one year remained broadly unchanged at 0.30%, while the interest rate on deposits redeemable at three months’ notice and on overnight deposits showed no change in June 2019, at 0.43% and 0.03%, respectively. Data for bank interest rates for households Further information Tables containing further breakdowns of bank interest rate statistics, including the composite cost-of-borrowing indicators for all euro area countries, are available from the ECB’s Statistical Data Warehouse. A subset is visually presented in “Our statistics” at www.euro-area-statistics.org. The full set of bank interest rate statistics for both the euro area and individual countries can be downloaded from SDW. More information, including the release calendar, is available under “Bank interest rates” in the statistics section of the ECB’s website.

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Components of the broad monetary aggregate M3

The annual growth rate of the broad monetary aggregate M3 decreased to 4.5% in June 2019 from 4.8% in May, averaging 4.7% in the three months up to June. The components of M3 showed the following developments. The annual growth rate of the narrower aggregate M1, which comprises currency in circulation and overnight deposits, stood at 7.2% in June, unchanged from the previous month. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) decreased to -0.1% in June from 0.7% in May. The annual growth rate of marketable instruments (M3-M2) was -3.7% in June, compared with -2.7% in May.

Data for monetary aggregates

Looking at the components’ contributions to the annual growth rate of M3, the narrower aggregate M1 contributed 4.8 percentage points (as in the previous month), short-term deposits other than overnight deposits (M2-M1) contributed 0.0 percentage point (down from 0.2 percentage point) and marketable instruments (M3-M2) contributed -0.2 percentage point (down from -0.1 percentage point).

From the perspective of the holding sectors of deposits in M3, the annual growth rate of deposits placed by households stood at 5.8% in June, compared with 5.9% in May, while the annual growth rate of deposits placed by non-financial corporations increased to 5.7% in June from 5.4% in May. Finally, the annual growth rate of deposits placed by non-monetary financial corporations (excluding insurance corporations and pension funds) stood at -0.8% in June, compared with -0.7% in May.

Counterparts of the broad monetary aggregate M3

As a reflection of changes in the items on the monetary financial institution (MFI) consolidated balance sheet other than M3 (counterparts of M3), the annual growth rate of M3 in June 2019 can be broken down as follows: credit to the private sector contributed 3.3 percentage points (up from 2.8 percentage points in May), net external assets contributed 2.4 percentage points (as in the previous month), credit to general government contributed -0.1 percentage point (down from 0.2 percentage point), longer-term financial liabilities contributed -1.2 percentage points (down from -0.8 percentage point), and the remaining counterparts of M3 contributed 0.1 percentage point (as in the previous month).

Data for contribution of the M3 counterparts to the annual growth rate of M3

Credit to euro area residents

As regards the dynamics of credit, the annual growth rate of total credit to euro area residents stood at 2.2% in June 2019, compared with 2.1% in the previous month. The annual growth rate of credit to general government decreased to -0.2% in June from 0.7% in May, while the annual growth rate of credit to the private sector increased to 3.0% in June from 2.6% in May.

The annual growth rate of adjusted loans to the private sector (i.e. adjusted for loan sales, securitisation and notional cash pooling) increased to 3.5% in June from 3.3% in May. Among the borrowing sectors, in June the annual growth rate of adjusted loans to households stood at 3.3% and the annual growth rate of adjusted loans to non-financial corporations stood at 3.8%, both unchanged from the previous month.

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