On Tuesday, March 5, the Central Bank published an update on the changes in interest rates on loans and deposits in Cyprus in January 2024.
Interest rates on loans
The interest rate on consumer loans decreased to 5.64% compared to 5.88% in the previous month. In turn, the interest rate on home loans increased to 5.26% from 5.16%.
The interest rate on loans to non-financial corporations up to €1 million rose to 5.65% from 5.62% in the previous month, the highest rate since July 2016.
Finally, the interest rate on loans to non-financial corporations over €1 million increased to 6.02%, up from 5.73% in December 2023.
Interest rates on deposits
The interest rate on time deposits of up to one year for households decreased to 2.06% in January 2024 from 2.29% in the previous month. The corresponding interest rate on deposits of non-financial corporations fell to 2.11% compared to 2.19% in the previous month.
The Central Bank of Cyprus noted that the growth of interest rates in Cyprus is directly related to the size of the key rate, which has been repeatedly increased in an attempt to curb inflation, which has reached record-high levels.