Return to the quarterly calculation of the usury rate to support the stabilization of rates

(Boursier.com) — Following the rapid rise in the ECB’s key rates, the Governor of the Bank of France and the Minister of Finance exceptionally decided to publish monthly usury rates from January 2023.
From January 2023 to January 2024, the rise in usury rates was rapid, +270 basis points for property loans over 20 years old. For this category, the usury rate now reaches 6.29%, underlines the Banque de France.
“The implementation of this monthly payment has therefore enabled banks to better support the rise in rates and has given them greater room for maneuver to adjust their scales… This has resulted in more fluid production, distribution credit rates returning to an almost regular profile with a clear reduction in the phenomenon of accumulation at the usury rate between two calculation dates.

“This exceptional monthly payment is no longer necessary,” continues the monetary authority. “The stabilization of the Eurosystem’s key rates, that of the LVA rate at 3% and the recent drop in long-term rates justify the return to the quarterly fixing of the usury rate. This should contribute to the trend towards the stabilization of the scales real estate credit, and give better visibility to borrowers.