Interest rate spread up in April, Says the Bank Of Greece

The interest rate spread between new deposits and loans increased to 5.60 percentage points in April, as the weighted average interest rate on new deposits remained almost unchanged at 0.25%, while the corresponding rate on new loans increased to 5.85%, the Bank of Greece said on Tuesday.

In a report, the central bank said that the weighted average interest rate on outstanding deposits increased to 0.29%, while the corresponding rate on loans increased to 5.84%. The interest rate spread between outstanding amounts of deposits and loans increased to 5.55 percentage points.

In particular, the average interest rate on overnight deposits placed by households remained almost unchanged at 0.02%, while the corresponding rate on deposits by non-financial corporations remained unchanged at 0.10%. The average interest rate on deposits from households with an agreed maturity of up to 1 year increased by 6 basis points to 1.22%. The corresponding rate on deposits by non-financial corporations increased by 40 basis points to 1.87%.

The weighted average interest rate on new loans to households and non-financial corporations increased by 12 basis points to 5.85%. More specifically, the average interest rate on consumer loans without a defined maturity (a category that comprises credit cards, revolving loans and overdrafts) increased by 13 basis points to 15.03%. In April 2023, the average interest rate on new corporate loans with a defined maturity at a floating rate increased by 5 basis points to 5.56%. The average interest rate on loans with a defined maturity at a floating rate to small and medium-sized enterprises (SMEs) increased by 37 basis points to 6.05%.