On Tuesday 4th February the Central Bank of Cyprus published an update on the changes in interest rates on loans and deposits in Cyprus until December 2024.
Interest rates on loans
The interest rate on consumer loans rose to 7.2% from 6.99% in the previous month. In turn, the interest rate on housing loans increased to 4.75 percent from 4.5 percent in November 2024.
In contrast, the rate for loans to non-financial corporations up to 1 million euro fell to 5.01% from 5.45% in the previous month. Finally, the rate for loans to non-financial corporations over 1 million rose to 4.97% from 4.72% in November.
Interest rates on deposits
The interest rate on time deposits of households up to one year rose to 1.78% in December from 1.7% in the previous month. The corresponding rate on deposits of non-financial corporations fell to 1.74% in December 2024 from 1.99% in November 2024.
The Cyprus Bankers' Association said it expects interest rates to fall in the next six to eight months, arguing that there is no delay in rate cuts compared to the European Central Bank's decisions.
Recall that the Central Bank earlier released data on loans and deposits issued in December 2024. The island nation's banking system recorded an increase in the volume of new deposits and loans.