Central Bank: Interest rates on loans and deposits fell substantially to Q4
The average interest rate of householders' term deposits stood at 0.29 percent in the fourth quarter of 2021 (Q4 2021), down from 0.9 percent a year earlier, while average interest rates on consumer loads to householders had also fallen over the same time period, from 19.9 percent to 17.5 percent, the Bank of Estonia (Eesti Pank) says.
The average interest rate on long-term loans to non-financial companies fell to 2.68, from 3.02 percent.
Interest rates on term deposits of up to a year stood at a little higher in the Q4 2021 than the record low they posted in the previous quarter, the bank says.
The rate for households stood at 0.11 percent; for non-financial companies it was 0.10 percent and the interest rate on term deposits of over one year was 1.32 percent for households, and 0.44 percent for non-financial companies.
Interest rates on term deposits for households and non-financial companies last exceeded 2 percent in 2012
Loans to households
The interest rate on new housing loans issued by credit institutions with a mortgage stood at 1.97 percent, 0.25 percentage points lower than a year earlier in fact the all-time low.
The interest rate on new housing loans from creditors of 11.72 percent represented a six-year low (i.e. since the Bank of Estonia started collating the relevant data).
The average interest rate on housing loans issued with a mortgage by euro area monetary financial institutions came to 1.31 percent in December, 0.4 percentage point lower than a year earlier.
Interest rates in Estonia have on average been 0.5 percentage point higher than those in the euro area over the past five years, the Bank of Estonia says.
The interest rate on new consumption loans and leases other than car leases issued by credit institutions and the leasing companies associated with same was 11.5 percent, 2.5 percentage points lower than Q4 2020.
The interest rate at other creditors was 20.3 percent, and the interest rate on credit card loans issued by credit institutions fell for the third consecutive quarter, to 18.7 percent.
The interest rate on new sales of car leases by credit institutions and the leasing companies associated with them stood at 2.48 percent, the lowest level of the past two and a half years. The interest rate on car leases from other creditors was 20.3 percent, 0.9 percentage point lower than in the previous quarter, and 3.5 percentage points lower than a year earlier
The Bank of Estonia says it publish the statistics on interest rates for the first quarter of 2022 on May 19.
The full Bank of Estonia piece is here.
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Editor: Andrew Whyte