Average interest rates for consumer loans, which fluctuated between 4.64% and 5.69% in early 2022, have climbed to 7.28% and 8.59%, according to the latest European Central Bank (ECB) figures.
The continuous increases in base interest rates by the European Central Bank – from 0% in July 2022 to 4% have propelled the average cost of consumer and housing loans to unprecedented levels in the Eurozone, with Greece being significantly affected. Recent data from the Bank of Greece highlights a substantial interest rate gap between loans and deposits within the country.
In the Eurozone, housing loan interest rates ranged from 1.24% to 1.48% in the summer of 2021. In comparison to October 2023, the latest data show these rates have surged to between 3.6% and 4.81%.
Similarly, average interest rates for consumer loans, which fluctuated between 4.64% and 5.69% in early 2022, have climbed to 7.28% and 8.59%, according to the latest European Central Bank (ECB) figures.
Following the September rate hike, however, the ECB is reportedly considering putting the brakes on or at least pausing rate increases. This development could bring us closer to the zenith of interest rates in the Eurozone, and potentially in Greece as well.
According to the European Central Bank’s (ECB) observations in October, the composite cost index for new household loans for property purchases remained essentially unchanged at 3.91%. The composite cost index for new loans to businesses increased by 17 basis points to 5.26%.
