HNB: Average interest rate on long-term household deposits 0.75 percent

The average interest rates on long-term household deposits during 2023 are evidently on the rise, reaching 0.75 percent in July, the highest level since January 2017, announced the Croatian National Bank (HNB).

– Statistical indicators of interest rates from credit institutions for the main sources of their funds in the quarterly period ending in July 2023 generally continue the upward trend that began in the second half of 2022 – it was highlighted in the new HNB statistical release on interest rates from credit institutions.

Thus, for the main sources of funds in euros that credit institutions obtain from the household sector in July 2023, the average interest rate on savings deposits was 0.16 percent, which is 0.01 percentage points lower compared to July of the previous year.

At the same time, the average interest rate on long-term deposits increased by 0.64 percentage points compared to July 2022.

When it comes to the average interest rates on short-term deposits, although lower compared to April 2023, it is higher compared to its values from 2022, and in July of this year it amounted to 0.91 percent. In relation to last July, it increased by 0.82 percentage points, stated the HNB.

The averages of interest rates on euro-denominated deposits of non-financial enterprises in July 2023 were 2.77 percent for short-term and one percent for long-term deposits. For short-term deposits, an increase of 2.73 percentage points was recorded compared to July 2022, thus reaching the highest level since 2012.

– This growth has been continuously expressed throughout 2023. Although a decrease of 0.10 percentage points was recorded for long-term deposits compared to the previous quarter, the average interest rates remain significantly higher compared to July 2022 – it was noted in the HNB statistics.

Interest rates on loans to households and non-financial enterprises mostly continued the upward trend

Statistical indicators for the most important types of loans granted to households and non-financial enterprises also mostly show an upward trend since the second half of 2022, with the exception of loans based on overdrafts on transaction accounts and loans granted via credit cards, where the long-standing trend of decreasing average interest rates continues.

Thus, for the main categories of euro loans granted to households in July of this year, the highest average interest rate was recorded for non-purpose and other loans, amounting to 5.69 percent, which is the highest level of this average since October 2018.

On the other hand, the lowest average interest rate in this July was 3.25 percent, relating to housing loans, which also recorded a growth trend since the second half of 2022.

For loans based on overdrafts on transaction accounts, the average interest rate in July 2023 was 5.53 percent, while for credit card loans, the average interest rate in the same month was 4.67 percent.

When it comes to the main categories of euro loans granted to non-financial enterprises, the trend of rising average interest rates continued in July for both short-term and long-term loans.

The average interest rate on loans to non-financial enterprises was 4.36 percent for short-term loans and 5.33 percent for long-term loans.

This represents an increase of 0.79 and 0.17 percentage points compared to April 2023, and 3.03 and 3.42 percentage points compared to July 2022, for short and long terms, respectively, reported the central bank.