Cyprus lending rates continue to rise

Lending rates in Cyprus rose again in December 2022, with deposit rates also moving higher amid the European Central Bank’s normalisation of key interest rates, according to a report released on Thursday by the Central Bank of Cyprus (CBC).

According to the report, the interest rate for deposits with a term of up to one year from households increased by 23 basis points and reached 0.35 per cent, compared to 0.12 per cent the previous month.

This is the first substantial increase in household deposits in several months.

An increase of 20 basis points was also noted by the corresponding interest rate for deposits from non-financial companies, which stood at 0.61 per cent in December, compared to 0.41 per cent during the previous month.

Interest rates on loans, applicable to new loans, continued their upward trend, with the exception of corporate loans exceeding €1 million.

According to the central bank, the interest rate on consumer loans rose to 4.21 per cent in December, compared to 3.84 per cent the previous month.

In addition, the interest rate on home loans increased to 3.34 per cent, compared to 2.95 per cent in the previous month.

Furthermore, the interest rate for loans to non-financial companies for amounts of up to €1 million increased to 4.71 per cent, compared to 4.52 per cent during the previous month.

Conversely, the interest rate concerning loans to non-financial companies for amounts above €1 million recorded a decrease to 3.52 per cent, compared to 4.35 per cent in the previous month.