The Banque centrale du Luxembourg (BCL) has published the evolution of the main average interest rates on credit and deposit operations applied by Luxembourg credit institutions to households and non-financial companies (NFCs) in the euro area during the month of June 2021.

The variable interest rate on loans to households for house purchase fell by 4 basis points month-on-month to 1.29% in June 2021. At the same time, the volume of newly granted loans increased by €58m during this period, to €321m. In a year-on-year comparison, the rate fell by 7 basis points, while the volume of new business rose by €110m.

As regards the fixed interest rate on real estate loans granted to households, the BCL noted an increase of 3 basis points over one month to reach 1.36% in June 2021. The monthly volume of newly granted loans rose by €76m in comparison with the month before to reach €552m in June 2021. Year-on-year, the rate rose by 3 basis points, while the amount of loans granted increased by €164m.

Consumer credit rate on the rise

The interest rate on consumer loans, for which the initial rate fixation period is greater than one year and less than or equal to five years, increased by 14 basis points over one month to 2.66% in June 2021, while the volume of business increased by €4m during this period to €31m.

On an annual basis, the interest rate increased by 6 basis points while business volume decreased by €1m. The interest rate on household time deposits with an original maturity of up to one year increased from 1 basis point in May 2021 to 21 basis points in June 2021. In a year-on-year comparison, this rate increased by 4 basis points.

This article in French on Paperjam and has been translated and edited for Delano.