The European Central Bank reported that euro area bank borrowing costs diverged in August 2026. The composite rate on new corporate loans was broadly unchanged at 3.77%, while the composite rate on new household loans for house purchase rose 6 basis points to 3.60%. The rate on new consumer loans increased 33 basis points to 7.92%. Among corporate loans, the rate on floating or short term fixed loans above EUR 1 million fell 14 basis points to 3.34%, while the equivalent rate on loans up to EUR 250,000 rose 10 basis points to 3.93%. For households, the rate on floating or short term fixed mortgages increased 17 basis points to 3.86%, and rates also rose for fixation periods above five years. Deposit rates were mostly stable. The composite rate on new corporate deposits with an agreed maturity remained broadly unchanged at 2.25%, while the corresponding household rate increased 4 basis points to 2.18%. Overnight deposit rates were broadly unchanged at 0.61% for corporations and 0.29% for households.
European Central Bank reports stable corporate borrowing costs and higher household mortgage rates in August
The European Central Bank reported that the composite rate on new euro area corporate loans was broadly unchanged at 3.77% in August 2026. The rate on new household mortgages rose 6 basis points to 3.60%, while the consumer lending rate increased 33 basis points to 7.92%. Deposit rates were mostly stable, although the composite rate on household term deposits rose to 2.18%.