On Wednesday 4th December the Central Bank of Cyprus published an update on changes in interest rates on loans and deposits in Cyprus until October 2024.
Interest rates on loans
The interest rate on consumer loans rose to 8% from 6.5% in the previous month. In turn, the interest rate on housing loans increased to 4.62% from 4.53% in September 2024.
In contrast, the rate for loans to non-financial corporations up to 1 million euro fell to 5.45% from 5.59% in the previous month. Finally, the rate for loans to non-financial corporations of more than 1 million euro fell to 4.72% from 5.26% in September.
Interest rates on deposits
The interest rate on time deposits up to one year for households fell to 1.76% in October from 1.98% in the previous month. However, the corresponding rate for deposits of non-financial corporations increased to 2.19% in October 2024 from 2.14% in September 2024.
The Cyprus Banks Association said it expected further rate cuts in the next 6-8 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 October 2024. The island nation's banking system recorded an increase in the volume of new deposits and a decrease in new loans.