The Bank of Portugal published updated statistics on interest rates and volumes for new bank loans and deposits to households and companies for January 2025, covering transactions between banks resident in Portugal and euro area resident households and firms. The average rate on new household term deposits fell for the 13th consecutive month to 1.98%, while the average rate on new housing loans was broadly unchanged at 3.22% after 14 consecutive months of declines. New household term deposits rose by EUR 1,416 million to EUR 13,087 million; deposits up to one year accounted for 97% of new term deposits and paid 1.99% on average (down 0.19 percentage points), versus 1.63% for one to two years and 1.46% for over two years. The euro area average household term deposit rate fell to 2.34%, with Portugal ranked as the fifth-lowest. For companies, the average rate on new term deposits declined to 2.44% and volumes fell to EUR 9,175 million, with up to one year representing 99% of new term deposits. New lending to households totalled EUR 2,779 million (including new contracts and renegotiations), with new housing loan contracts down to EUR 1,522 million; borrowers under 35 represented 45% of the amount of new primary-residence housing loans. The average rate on new consumer credit increased to 9.12%, while loans for other purposes averaged 3.93%. New lending to companies fell to EUR 2,018 million and the average rate edged down to 4.25%, with rates of 4.33% for loans up to EUR 1 million and 4.17% for loans above EUR 1 million. Within primary-residence housing lending, 70% of new loans were at mixed rates (down 4 percentage points month-on-month) and variable-rate loans rose to 23% of new production; average rates were 2.99% for mixed-rate loans, 3.54% for variable-rate and 3.60% for fixed-rate. The average monthly instalment on the outstanding stock of primary-residence mortgages fell to EUR 412. The next update is scheduled for 2 April 2025.

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