Household interest rates decrease, but spreads widen in August

Rate movements during the month were influenced by two base rate cuts by MNB, at 25 basis points in late July and a larger 50 bp cut in late August.
In the household sector, both lending and deposit interest rates decreased for the most part, although the latter dropped at a higher rate, leading to a widening of margins. Rates on home and consumer loans fell by 20-34 bp, while the interest on in-year deposits decreased by 58 bp on average.
As a result, the spread between consumer loans and deposit rates of under one year widened by 24 bp to 13.71 percentage points. Rates on deposits of over one year, however, actually increased by 16 bp.
Meanwhile, rates as well as spreads were lower in the corporate sector. Lending rates fell by 37-127 bp, while interest on deposits decreased by 34-106 bp. As a result, the spread between corporate lending and deposit rates narrowed slightly from 217 to 214 bp in the most important one year and under segment.