The Central Bank of Cyprus has announced a reduction in its base lending rate, which is linked to the European Central Bank (ECB) rate, from 2.65% to 2.4% with effect from 23 April 2025.
The decision was taken in line with recent changes in the ECB's monetary policy, which recently announced a reduction in key interest rates to stimulate economic activity in the euro area. The rate reduction will affect all credit products whose terms depend on the ECB's base rate, including mortgage, consumer and corporate loans.
Bank of Cyprus will continue to actively support the real economy, households and small and medium-sized enterprises by offering a wide range of financial products with competitive interest rates and flexible terms. We are committed to ensuring that our customers feel confident even in times of economic uncertainty," said an official statement from Bank of Cyprus.
This decision is aimed at easing the debt burden of borrowers and creating more favourable conditions for attracting new investment and developing entrepreneurship.
The rate cut is expected to stimulate demand for credit, especially among young families buying their first homes and small businesses in need of working capital.
The Bank also noted that it will continue to assess the market situation and adjust its financial offer in a timely manner, taking into account macroeconomic trends, ECB decisions and the needs of the Cypriot economy.
It should be noted that Bank of Cyprus remains a key player in the country's financial market and continues to demonstrate solid financial performance and high levels of customer confidence. In addition to the rate cut, the bank is also actively investing in digital technology, green financing and social initiatives, thus reinforcing its role as a responsible corporate citizen. The rate cut is another step by the Bank towards creating a more accessible and sustainable financial environment for all residents and businesses in Cyprus.