Cyprus interest rates for deposits drop despite ECB rate hikes

Cyprus experienced a decrease in acceptance deposit rates (for new placements) within its banking system during the month of July, despite consecutive increases in the European Central Bank’s (ECB) key interest rates.

At the same time, interest rates for loans in all categories showed an upward trend.

According to data released by the Central Bank of Cyprus (CBC), the interest rate for deposits with a maturity of up to one year from households witnessed a reduction of 34 basis points, falling to 0.87 per cent, compared to 1.21 per cent the previous month.

The corresponding interest rate for deposits from non-financial corporations also saw a decrease of 18 basis points, settling at 1.68 per cent, compared to 1.86 per cent the previous month.

According to the CBC, the interest rate for consumer loans increased to 5.51 per cent, compared to 5.23 per cent the previous month. Additionally, the interest rate for housing loans rose to 4.50 per cent, up from 4.19 per cent the previous month.

Regarding business loans, the interest rate for loans to non-financial corporations for amounts up to €1 million saw an increase to 5.65 per cent, compared to 5.17 per cent the previous month.

Meanwhile, the interest rate for loans to non-financial corporations for amounts exceeding €1 million recorded an increase to 6.33 per cent, up from 5.87 per cent the previous month.