Bank average deposit rate increased 0,2 percentage points; lending rates unchanged
The upward movement in money market rates in December was mirrored only in bank deposit rates, which rose in the fourth quarter, while lending rates were unchanged for banks and went on falling for housing intermediaries, according to the Riksbank's survey of the average level of these rates on 31st December 1997.
Banks raised deposit rates in the fourth quarter by an average of 0.2 percentage points, to 2.5 per cent, while their average lending rate was unchanged at 7.0 per cent. At end December the difference between the average levels of bank lending and deposit rates had narrowed 0.2 percentage points to 4.5 percentage points. The 6-month T-bill rate rose 0.4 percentage points in the fourth quarter; in December the repo rate was increased by 0.25 percentage points.
For house mortgage institutions, the average lending rate for the total loan stock fell 0.4 percentage points in the fourth quarter, to 7.9 per cent. Since March 1996, when housing institutions were first included in these surveys, their average overall lending rate has fallen 2.6 percentage points.
For all loans from banks and housing institutions combined, the weighted average rate at end December was 7.6 per cent, which means that in the course of 1997 the average interest cost for the non-bank public decreased by 1.2 percentage points. The loan stock in question constitutes 82 per cent of the credit institutions' total stock of domestic currency loans to the non-bank public.
Copies of the survey are available at the Riksbank's entrances at 11 Brunkebergstorg and 7 Malmskillnadsgatan. They can also be ordered from the Information Centre via e-mail ([email protected]), fax (+46 8 787 0526) or telephone (+46 8 787 0100). For further information please apply to Enar Olofsson, telephone +46 8 787 0138 and Kristina Löfstrand, telephone +46 8 787 0562.