The Central Bank of Luxembourg published provisional data showing that variable borrowing rates declined in July 2026 as new lending volumes increased. The variable household mortgage rate fell 2 basis points from June to 3.17%, while new lending rose by EUR 44 million to EUR 339 million. For nonfinancial corporations, variable rates declined to 3.50% on loans of up to EUR 1 million and to 2.84% on larger loans, with respective volumes reaching EUR 136 million and EUR 3.185 billion. Fixed household mortgage rates moved unevenly across initial fixation periods. The rate for periods of more than one year and up to five years remained at 3.72%, while rates for longer periods ranged from 3.50% to 4.05%. The household consumer credit rate rose 4 basis points to 5.12%. Short term deposit rates edged down to 1.81% for households but increased to 2.23% for nonfinancial corporations.
2026-09-16Central Bank of Luxembourg
Central Bank of Luxembourg reports lower variable lending rates and increased credit volumes in July
The Central Bank of Luxembourg reported lower variable lending rates and higher new credit volumes in July 2026. The household variable mortgage rate fell to 3.17%, while variable corporate loan rates declined to 3.50% for loans of up to EUR 1 million and 2.84% for larger loans. Deposit rates decreased slightly for households but rose for nonfinancial corporations.