The overall decline in interest rates on deposits for businesses and households continued in July but the pace of decline slowing slightly. The price at which banks lend to households also continued to decline in almost all segments, while business loans have increased compared to June
Deposit brake light
After months of noticeable decline in the yield on savings products offered in July some of the financial institutions again made promotional offers for deposits with higher interest rates, which also affect the calculation of the Bank averages for interest on investments. According to the observations of the financial portal “money” in the past month, the overall trend of deterioration on term deposits is preserved, but there were three banks have increased interest rates on new proposals.
The result can be seen in data from the statistics – in July yields on term deposits up to 1 year to households in BGN decreased by 0.05 percentage points (a decrease of 0.08 percentage points in June) to 1.28%. The delay may be a signal for gradually reaching the point of marginal decline in interest on investments. The decline in savings in EUR by 0.04 percentage points (as it was last month) to 1.09%. Interest on investments business also continued to decline and reached respectively 0.68% (-0.11 percentage points) and 0.72% (-0.14 percentage points) in July.