Most of the euro area MFI interest rates on new deposits and loans were slightly lower in March 2004 than in the previous month.

Selected MFI interest rates (weighted averages on new business)

percentages per annum excluding charges)

Source: ECB MFI interest rate statistics.

MFI interest rates on new business: The weighted average rate on overnight deposits from non-financial corporations decreased by 2 basis points to 0.86% in March 2004. The weighted average rate on deposits from households redeemable at up to and including three months? notice also decreased by 2 basis points, to 2.00% in March. In contrast, the weighted average rate on deposits from households with an agreed maturity up to and including one year increased by 5 basis points to 1.92% in March.
The weighted average rate on bank overdrafts of households decreased by 9 basis points to 9.72% in March 2004. In the case of loans up to and including EUR 1 million to non-financial corporations at floating rate or up to and including one year initial rate fixation, the weighted average rate decreased by 13 basis points to 3.89%. Similarly, the weighted average rate on loans over EUR 1 million to non-financial corporations with the same initial rate fixation decreased by 4 basis points to 2.93% in March. For longer-term loans, the weighted average rate on loans to non-financial corporations over EUR 1 million with over five years? initial rate fixation increased by 9 basis points to 4.39% in March. For households, the weighted average rate on loans for house purchase with over five and up to and including ten years? initial rate fixation decreased by 11 basis points to 4.86% in March.

MFI interest rates on outstanding amounts: The weighted average interest rate paid on outstanding amounts of deposits from households with an agreed maturity up to and including two years declined by 2 basis points to 1.92% in March 2004. The weighted average interest rate paid on outstanding amounts of deposits from non-financial corporations with an agreed maturity up to and including two years remained broadly unchanged at 2.07% in March.

The weighted average interest rate charged on outstanding amounts of loans to households for house purchases with over five years? maturity decreased by 7 basis points to 5.04% in March. The weighted average interest rates on outstanding amounts of loans with over five years? maturity to non-financial corporations increased by 3 basis points to 4.61% in March.

Weighting method: The new business interest rates are weighted by the size of the individual agreements, by the reporting agents and when computing the national and euro area averages. In addition to changes in the actual interest rates, changes in the euro area average interest rates on new business therefore reflect changes in the weights of the countries within the instrument categories.

Notes

• New business refers to any new agreement between the customer and the MFI, while outstanding amounts refer to the stock of all deposits and all loans at a specific moment in time. Three instrument categories ? overnight deposits, bank overdrafts and deposits redeemable at notice ? form a separate group for which interest rates on new business and on outstanding amounts coincide.

• More detailed information on MFI interest rate statistics is available under "MFI interest rate statistics" in the "Statistics" section of the ECB's website (http://www.ecb.int).

• The corresponding business volumes for each of the MFI interest rate categories are shown in Tables 2 and 4 of the Annex.

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