Interest rates on consumer and housing loans in Cyprus recorded a fresh increase in June 2025, according to figures released this week by the Central Bank of Cyprus (CBC).

In contrast, interest rates on loans to businesses showed a decline, while deposit rates for households and businesses remained almost unchanged.

According to the CBC data, consumer loans rose to 7.01 per cent from 6.77 per cent in May.

Housing loans also increased, reaching 3.95 per cent compared to 3.81 per cent the previous month.

The CBC noted that the housing loan portfolio consists of various types of such loans, for example loans for primary residences or holiday homes, which carry different levels of risk and interest rates.

It also stressed that the composition of this portfolio changes from month to month, which affects the weighted average interest rate regardless of any increases or decreases in the rates set by monetary financial institutions.

In contrast, a decrease was observed in business loan interest rates.

For amounts up to €1 million, the rate fell to 4.39 per cent from 4.67 per cent.

For amounts exceeding €1 million, the rate dropped to 4.04 per cent from 4.65 per cent.

On the deposit side, the rate for household term deposits of up to one year eased to 1.13 per cent from 1.16 per cent.

For non-financial corporations, the rate remained steady at 1.18 per cent.

When compared with the euro area average, the existing household loan rate in Cyprus stood at 4.09 per cent, compared to 4.00 per cent across the euro area.

For non-financial corporations, the rate was 4.36 per cent in Cyprus, higher than the euro area average of 3.92 per cent.