Nordea will cut its Prime rate by 0.15 percentage points to 0.80 per cent. Nordea DepositRate will also be cut by 0.15 percentage points to 0.75 per cent. These changes will become effective as of 1 April 2016.
Nordea applies the Prime rate as a reference rate both in deposits and in housing loans. The popularity of Prime as the reference rate for housing loans has steadily declined over the years. However, 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 rates' 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 1 January 2016.
For further information:
Aki Kangasharju, Chief Economist, +358 9 165 59952
Jussi Mekkonen, Deputy Head of Banking Finland, +358 9 5300 7054