Interest rates across the euro area showed a relatively mixed pattern in July 2026. The latest figures from the European Central Bank indicate that overall borrowing costs remained fairly stable, while several deposit rates increased.

The changes were modest in some areas but more noticeable for certain types of household and business loans.

Business Borrowing Stays Steady

For non-financial corporations, the ECB's composite cost-of-borrowing indicator stood at 3.80% in July. That was only one basis point higher than in June, indicating little overall movement in the combined measure.

However, individual loan categories moved in different directions. New loans above €1 million with floating rates and an initial rate-fixation period of up to three months averaged 3.49%, down seven basis points from the previous month.

Meanwhile, loans above €1 million with an initial fixed period of more than three months and up to one year rose by 17 basis points to 3.84%. Loans above €1 million with an initial rate-fixation period exceeding 10 years declined by five basis points to 3.73%. This variation shows why the overall business borrowing indicator can remain stable even when individual lending categories experience noticeable monthly changes.

Small Business Loans Also Moved

The data also covered new loans of up to €250,000 with floating rates and an initial rate-fixation period of no more than three months. The average rate fell eight basis points to 3.83% in July. For sole proprietors and unincorporated partnerships, however, the picture was different. Loans with floating rates and an initial fixation period of up to one year carried an average rate of 4.29%, an increase of 18 basis points compared with June.

Deposit Rates Edge Higher

Businesses also saw some movement in the rates offered on new deposits. The composite interest rate for new deposits with an agreed maturity increased by five basis points to 2.26%.

For deposits with a maturity of up to one year, the average rate reached 2.24%, also five basis points higher than in June. By comparison, the rate on overnight business deposits remained broadly unchanged at 0.60%. The difference between maturity-based deposits and overnight accounts reflects how the terms attached to savings can influence the interest rate offered by banks.

Household Borrowing Costs

For households, the composite cost of borrowing for house purchases remained broadly stable at 3.54% in July, although it increased by three basis points from June. Different mortgage structures recorded slightly different movements. Rates on housing loans with floating rates and an initial fixation period of up to one year increased by four basis points to 3.69%.

Loans with an initial fixation period of more than one year and up to five years reached 3.57%, while those fixed for more than five and up to 10 years increased to 3.73%. For loans with an initial fixation period longer than 10 years, the rate was 3.36% and changed very little during the month.

Consumer Loans Rise More

Households experienced a larger monthly increase in the cost of new consumer loans. The average rate climbed nine basis points to 7.60% in July. That increase was greater than the movement recorded for home-purchase borrowing. It means households seeking consumer credit faced a different rate environment from those taking out new housing loans.

At the same time, new household deposits with an agreed maturity saw their composite interest rate rise five basis points to 2.14%. Deposits with maturities of up to one year reached 2.10%, while deposits redeemable with up to three months' notice stood at 1.18%.

What the July Data Shows

The July figures do not point to one uniform direction for euro-area interest rates. Instead, they show a financial environment in which different types of borrowing and saving products are moving at different speeds. Business borrowing costs were broadly stable overall, while some specific loan categories increased or declined.

For households, home-purchase borrowing remained relatively steady, but consumer lending became more expensive. Deposit rates for both households and businesses generally moved higher for accounts with agreed maturities.

These figures also highlight why looking beyond a single headline rate can be useful. Loan size, repayment terms, and the length of the initial rate-fixation period can all affect the rate attached to a new agreement. For households and businesses, the July data therefore offers a detailed picture rather than a single trend: overall borrowing costs were mostly steady, while selected lending and deposit categories continued to adjust.