The average interest rate for household time deposits up to one year in Cyprus stood at 1.16 per cent in the latest data published by the Central Bank of Cyprus, lagging behind the euro area average of 1.84 per cent.

According to the CBC, the highest one-year household deposit rate among Cypriot banks was offered by Eurobank Cyprus Ltd at 1.49 per cent, followed by Jordan Ahli Bank PLC at 1.38 per cent.

Central Cooperative Bank S.A., based outside Cyprus, recorded the highest rate overall at 1.70 per cent.

Alpha Bank Cyprus Ltd and Astrobank Public Co Ltd offered lower deposit rates of 0.98 per cent and 0.83 per cent respectively.

For housing loans with floating interest rates and an initial fixation period of up to one year, Cypriot banks continued to offer relatively high rates compared to the eurozone average.

Moreover, the average interest rate in Cyprus reached 3.74 per cent, slightly below the euro area average of 3.75 per cent.

Eurobank Cyprus Ltd recorded the lowest housing loan interest rate among domestic institutions at 2.19 per cent.

Astrobank Public Co Ltd offered a rate of 3.50 per cent, while Alpha Bank Cyprus Ltd and Ancoria Bank Ltd offered 2.93 per cent and 3.01 per cent respectively.

The highest housing loan rate in the domestic market was recorded by Central Cooperative Bank S.A. at 5.14 per cent.

On the business lending side, Cyprus banks continued to charge significantly higher rates than their euro area peers.

The CBC also reported that the average interest rate in Cyprus for business loans of up to €1 million to non-financial corporations, with a floating rate and initial period of fixation up to one year, stood at 4.84 per cent.

This compared unfavourably with the euro area average of 4.20 per cent.

Central Cooperative Bank S.A. posted the highest rate at 6.58 per cent, followed by Astrobank Public Co Ltd at 6.23 per cent.

Arab Jordan Investment Bank S.A. and Banque SBA offered business loan rates of 5.25 per cent and 5.51 per cent respectively.

Eurobank Cyprus Ltd and Alpha Bank Cyprus Ltd recorded lower rates of 4.69 per cent and 4.02 per cent respectively.

The data illustrate that Cypriot borrowers continue to face elevated borrowing costs relative to deposit rates, highlighting persistent spreads across retail financial products.

This environment has implications for consumption, investment and overall financial stability, particularly at a time when European Central Bank policy rates are beginning to ease.