On Tuesday 7th January the Central Bank of Cyprus published an update on the changes in interest rates on loans and deposits in Cyprus in November 2024.
Interest rates on loans
The interest rate on consumer loans fell to 6.99% from 8% in the previous month. In turn, the interest rate on housing loans decreased to 4.5% from 4.62% in October 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 October.
Interest rates on deposits
The interest rate on time deposits of households with an agreed maturity of up to one year decreased to 1.7% in November from 1.76% in the previous month. The corresponding rate on deposits of non-financial corporations also fell to 1.99% in November 2024, from 2.19% in October 2024.
The Cyprus Bankers' Association said it expected further rate cuts in the next 6-8 months, arguing that there was no delay in rate cuts compared to the European Central Bank's decisions.
Recall that earlier the Central Bank released data on loans and deposits issued in November 2024. In the banking system of the island state was recorded an increase in the volume of new deposits and a decrease in new loans.