Loan/deposit interest rate spread down in May

The interest rate spread between loan and deposit interest rates shrank to 4.39 pct in May from 4.65 pct in April as loan interest rates fell and deposit interest rates remained unchanged, the Bank of Greece said on Friday.

In a monthly report, the central bank said that the average weighted interest rate on new deposits was almost unchanged at 0.27 pct, while the average weighted interest rate on new loans to households and enterprises fell by 27 basis points to 4.66 pct.

The average interest rate on consumer loans with no defined maturity fell by 9.0 basis points to 14.49 pct, while average interest rates on mortgage loans with floating interest rate rose five basis points to 3.13 pct. The average interest rate on consumer loans with a defined maturity and a floating rate rose 24 basis points to 10.12 pct.

The average interest rate on corporate loans with no defined maturity was unchanged at 4.95 pct, the average interest rate on corporate loans with a defined maturity and a floating rrate fell 71 basis points to 3.80 pct.