Central Bank: Gap Narrows Between Cyprus and Eurozone Interest Rates

Monthly data from July 2024 show narrowing differences across deposits and loans, with transparency boosted by institution-level reporting.

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POLITIS NEWS

The Central Bank of Cyprus reports a stronger alignment between Cypriot and eurozone interest rates across both deposits and loans. To boost transparency, the bank has been publishing institution-level deposit and lending rates since July 2024.

What the latest data show

For new fixed-term household deposits up to one year, the Cyprus average stood at 1.10 percent, compared with 1.74 percent across the eurozone. For non-financial corporations, the Cyprus average was 1.24 percent versus 1.90 percent in the eurozone.

On housing loans to households (new contracts, any initial rate-fix period), the Cyprus average was 3.03 percent, compared with 3.34 percent in the eurozone.

For business lending to non-financial corporations, new loans up to €1 million averaged 4.20 percent in Cyprus. New loans over €1 million averaged 3.84 percent.

Regular, detailed publication of rates makes it easier for households and firms to compare offers and negotiate better terms. The Central Bank says the monthly releases give the public direct access to comprehensive interest-rate information across Cyprus’s credit institutions.

 

Source: CNA

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