On Wednesday 5th March the Central Bank of Cyprus (CB) published an update on changes in interest rates on loans and deposits in Cyprus in January 2025.
Interest rates on loans
The interest rate on consumer loans fell to 6.25 per cent from 7.2 per cent in the previous month. In turn, the interest rate on housing loans decreased to 4.47% from 4.75% in December 2024.
The rate for loans to non-financial corporations up to 1 million euro fell to 5.08% from 5.11% in the previous month. Finally, the rate on loans to non-financial corporations of more than 1 million rose to 4.9% from 4.82% in December.
The Central Bank notes that the housing loan portfolio is made up of different types of loans, such as loans for first homes, holiday homes and others, which carry different risks and interest rates. According to the Central Bank, the composition of this portfolio varies from month to month, so that the weighted average interest rate is subject to the aforementioned changes, regardless of interest rate increases or decreases.
The Bank also mentioned that interest rates on loans refer to floating rate loans with an initial fixed maturity of up to one year.
Interest rates on deposits
The interest rate on time deposits with a maturity of up to one year for households fell to 1.34 percent in January 2025 from 1.79 percent in the previous month. The corresponding rate for deposits of non-financial corporations increased to 1.8 percent in January 2025 from 1.73 percent in December 2024.