On Wednesday 2nd April the Central Bank of Cyprus released new data on changes in interest rates on loans and deposits in Cyprus in February 2025.
According to the island nation's main financial institution, lending rates for households rose in the second month of the new year, while borrowing costs for businesses fell. At the same time, deposit rates were mixed.
Lending rates
The rate on consumer loans rose to 7.11% from 6.25% in the previous month. The rate for housing loans rose to 4.56% from 4.47% in the previous month. This development is mainly due to the change in the composition of Cyprus banks' housing portfolio, which includes different types of housing loans with different degrees of risk and corresponding interest rates.
The interest rate on loans to non-financial corporations of up to €1 million decreased to 4.66%, compared with 5.08% in January 2025. Finally, the rate for loans to non-financial corporations of more than €1 million fell to 4.48%, compared with 4.9% in the previous month.
Interest rates on deposits
The interest rate on time deposits with a maturity of up to one year for households rose to 1.51% in February 2025, from 1.34% in the previous month. The corresponding rate on deposits of non-financial corporations decreased to 1.54%t, compared to 1.8% in January 2025.
The Central Bank of Cyprus noted that the rise or fall of interest rates in Cyprus is directly related to the level of the policy rate, which is constantly changing.