Lenders cut their rates in June

Local banks resorted to significant interest rate cuts in June, on both deposits and lending, but have maintained a significant spread from European rates in several categories. Bank of Greece data showed that the average floating rate for consumer loans declined from 8.54 percent in May to 7.59 percent in June (with the eurozone average at 7.27 percent), while the fixed rate rose from 8.49 percent to 8.80 percent (against 6.37 percent in the eurozone). In mortgage loans, the floating rate reached 3.46 percent (from 3.13 in the eurozone) and the fixed rate up to five years averaged 4.87 percent (4.05 percent in the eurozone). Floating rates for corporate loans over 1 million euros averaged 4.60 percent (3.64 percent in the eurozone), but the fixed rate soared from 5.91 percent in May to 6.87 percent in June (against 4.86 percent in the eurozone). Rates for savings accounts fell to 0.45 percent and for time deposits to 2.55 percent.