On Thursday 31st October the Central Bank of Cyprus published an update on the changes in interest rates on loans and deposits in Cyprus in September 2024.
Interest rates on loans
The interest rate on consumer loans decreased to 6.5% from 6.59% in the previous month. In turn, the interest rate on housing loans increased to 4.53% from 4.65% in August 2024.
In contrast, the rate for loans to non-financial corporations up to 1 million euro rose to 5.58% from 5.36% in the previous month. Finally, the rate for loans to non-financial corporations of more than 1 million euro decreased to 5.26% from 5.42% in August.
Interest rates on deposits
The interest rate on time deposits up to one year for households rose to 1.98% in September from 1.79% in the previous month. In contrast, the corresponding rate on deposits of non-financial corporations fell to 2.14 per cent from 2.33 per cent in August 2024.
The Cyprus Bankers' Association said it expects 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 earlier the Central Bank published data on loans and deposits issued in September 2024. Their total volume reached the mark of 25 billion euros and 485.7 million euros, respectively.