The Central Bank of Luxembourg published provisional August 2026 interest rate data showing that borrowing costs generally rose for euro area households and nonfinancial corporations using Luxembourg credit institutions, while new lending volumes fell from July. The main exception was variable rate corporate loans above EUR 1 million, where the average rate declined despite a sharp drop in activity. Short term deposit rates increased for both households and corporations. The variable rate on new household mortgages rose 2 basis points to 3.19%, while volume fell to EUR 201 million from EUR 339 million. Fixed mortgage rates also generally increased, reaching between 3.69% and 4.09% across most initial fixation periods, while lending with fixation periods above 10 years declined to EUR 138 million from EUR 204 million. The consumer credit rate rose 11 basis points to 5.23%, with volume falling to EUR 24 million from EUR 30 million. Household term deposits with maturities of up to one year paid 2.00%, up from 1.81%. For nonfinancial corporations, the variable rate on loans of up to EUR 1 million increased 5 basis points to 3.55%, as volume declined to EUR 106 million from EUR 136 million. The rate on loans above EUR 1 million fell 9 basis points to 2.75%, but volume nearly halved to EUR 1.69 billion from EUR 3.19 billion. The rate on corporate term deposits with maturities of up to one year edged up 1 basis point to 2.24%.
Central Bank of Luxembourg reports mostly higher August lending rates as new credit volumes decline
The Central Bank of Luxembourg reported mostly higher borrowing rates and lower new lending volumes in August 2026. Household variable mortgage rates rose to 3.19%, while corporate loans above EUR 1 million were the main exception, with rates falling to 2.75% as volume nearly halved. Short term deposit rates increased for households and nonfinancial corporations.