The Central Bank of Luxembourg (BCL) has published preliminary figures for June 2025, showing a slight overall decline in interest rates on new loans and deposits for households, while lending to businesses recorded mixed developments.

For households, the average variable interest rate on new mortgage loans dropped slightly to 3.28%, down from 3.32% in May. Lending volumes rose significantly, reaching €405 million compared to €252 million the previous month.

Rates for fixed mortgages remained mostly stable, with some minor changes depending on the duration of the initial fixation period.

Consumer loans also saw a marginal decrease in interest rates, standing at 4.8%, while fixed-term deposit rates for households declined more noticeably to 1.46%.

On the corporate side, the average interest rate for smaller business loans (under €1 million) decreased to 3.45%, with volumes rising slightly. However, larger loans (over €1 million) saw a sharp increase in interest rates, reaching 2.60%, though this was accompanied by a surge in new lending volume to nearly €3 billion. Corporate fixed-term deposit rates also fell to 1.79%.

The BCL notes that all figures are based on averages from a representative sample of Luxembourg’s credit institutions.