The interest rate spread between new deposits and loans increased to 5.94 percentage points in August, as the weighted average interest rates on new deposits and on new loans increased to 0.39% and 6.33% respectively, the Bank of Greece said on Wednesday.

The central bank, in a monthly report, said that in August 2023, the weighted average interest rate on outstanding amounts of deposits remained almost unchanged at 0.43%, while the corresponding rate on outstanding loans increased to 6.28%. The interest rate spread between outstanding amounts of deposits and loans remained almost unchanged at 5.85 percentage points.

The weighted average interest rate on new deposits increased by 4 basis points to 0.39%, compared to the previous month. In particular, the average interest rates on overnight deposits placed by households remained almost unchanged at 0.03%, while the corresponding rate on deposits by non-financial corporations increased by 3 basis points to 0.15%. The average interest rate on deposits from households with an agreed maturity of up to 1 year increased by 6 basis points to 1.56%. The corresponding rate on deposits by non-financial corporations remained almost unchanged at 2.70%.

The weighted average interest rate on new loans to households and non-financial corporations increased by 12 basis points to 6.33%. More specifically, the average interest rate on consumer loans without a defined maturity (a category that comprises credit cards, revolving loans and overdrafts) remained unchanged at 14.77%. The average interest rate on consumer loans with a defined maturity at a floating rate increased by 39 basis points to 13.40%. The average interest rate on housing loans at a floating rate decreased by 16 basis points to 4.03%. The average interest rates on new corporate loans and loans to sole proprietors without a defined maturity remained almost unchanged at 6.73% and 7.72% respectively. In August 2023, the average interest rate on new corporate loans with a defined maturity at a floating rate increased by 25 basis points to 6.35%. The average interest rate on loans with a defined maturity at a floating rate to small and medium-sized enterprises (SMEs) increased by 33 basis points to 6.07%.