The Bank of Portugal released a statistical note with March 2025 data on interest rates and volumes for new bank deposits and loans to households and corporates, covering transactions between banks resident in Portugal and euro area resident households and firms. Key highlights include a fifteenth consecutive monthly fall in the average rate on new household term deposits to 1.69%, an increase in new housing loan contracts to EUR 1.951 billion, and a drop in the average rate on new housing lending to 3.11%, the lowest since December 2022. For households, new term deposit volumes rose by EUR 1.230 billion to EUR 12.909 billion, with deposits up to one year accounting for 95% of flows and carrying an average rate of 1.70%. Rates for one to two years fell to 1.44%, while rates for maturities above two years increased to 1.51%. The average euro area rate on new household term deposits was 2.11%, leaving Portugal with the fourth-lowest rate. For corporates, the average rate on new term deposits decreased to 2.16% and volumes increased to EUR 9.482 billion, with up to one year representing 99.5% of new deposits. New household lending totalled EUR 3.245 billion, including new contracts and renegotiations, with renegotiations falling to EUR 471 million. In housing, average rates declined for both new contracts (to 3.05%) and renegotiations (to 3.39%), and borrowers aged 35 or under accounted for 56% of new lending for owner-occupied permanent residence (excluding credit consolidation and transfers). For corporates, new lending volumes increased to EUR 2.355 billion and the average rate fell to 4.06%, with rates declining in both the up to EUR 1 million and above EUR 1 million size bands. The next update is scheduled for 4 June 2025.

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