The euro area ended 2024 with interest rates falling substantially due to ECB rate cuts.

• The composite cost-of-borrowing indicator for corporate loans fell -16 bps to 4.36% and for household mortgages fell -8 bps to 3.39%.
• The corporate composite rate for new deposits with agreed maturity fell -12 bps to 2.80%, and overnight deposit rates fell by -4 bps to 0.77%.
• The household composite rate for new deposits with agreed maturity fell -15 bps to 2.45%, and overnight deposit rates were unchanged at 0.35%.
• New loan volumes are on the rise in response. The total volume of new €1 million+ loans with a floating rate and an initial rate fixation period jumped around €45 billion to €153.0 billion in December vs November.
• While rates fell for households. the increase in household loan volumes was lower. The total volume of new mortgage loans was only up €0.18 billion to €58.34 billion