Nordea will cut its Prime rate by 0.05 percentage points to 1.35 per cent. Nordea DepositRate will also be cut by 0.05 percentage points to 1.30 per cent. The revisions will become effective as from 1 January 2014.
Nordea applies the Prime rate as a reference rate both in deposits and in housing loans. Recently, the Prime rate has become less popular as the reference rate of housing loans. Still, in deposits its position has remained more stable.
Nordea DepositRate is a floating reference interest rate which follows the market rates. The DepositRate is used as the reference rate for the CurrentAccountPlus. The deposit interest payable on the account is calculated by deducting the margin defined for the interest tiers of the account from the deposit rate.
The value of the deposit rate is based on the market rate performance, but it is supposed to change slower than the market rates.
The rate cuts are based on the very low level of the market rates. The interest rates were last cut on 24 June 2013.
For further information:
Aki Kangasharju, Economic Research, +358 9 165 59952, +358 50 583 8573
Nina Luomanen, Household Business Development, +358 50 368 7026