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Italian rates on business loans hit one-year high in December -banking lobby

By Reuters

ROME – The average interest rate Italian banks charged on new corporate loans in December increased to its highest level in one year, Italian banking lobby ABI said on Tuesday.

The average rate on new business loans rose to 1.29% last month from 1.09% in November, hitting its highest since December 2020, when it stood at 1.38%, ABI said in its monthly report.

Rates however remain at historically low levels, ABI added.

ABI Deputy Director General Gianfranco Torriero said it was too early to say whether this marked the start of a trend.

“We need to be cautious in our assessment because the data on new corporate loans are more volatile,” Torriero said.

Italian banks’ lending to households and non-financial corporations continued to grow in December and was up 2.5% year on year, ABI said.