On Thursday, February 1, the Central Bank published the latest report on changes in interest rates on loans and deposits in Cyprus in November 2023.
Interest rates on loans
The interest rate on consumer loans decreased to 5.88% in November 2023, compared to 6.27% in the previous month. In turn, the interest rate on home loans increased to 5.16% compared to 5.04% in the previous month.
The interest rate on loans to non-financial corporations up to €1 million fell to 5.62% from 6% in the previous month. Finally, the interest rate on loans to non-financial corporations over €1 million rose to 5.73% from 5.59% in the previous month.
Interest rates on deposits
The interest rate on time deposits of up to one year for households increased to 2.29% in November 2023 from 2.01% in the previous month. Meanwhile, the corresponding interest rate on deposits of non-financial companies fell to 2.19% from 2.29% in October.
The Central Bank of Cyprus noted that the growth of interest rates in Cyprus directly depends on the size of the key rate, which is constantly increasing in an attempt to curb inflation, which has reached record-high levels.
Also, the main financial institution of the island state recalled that in December 2023, the total volume of new loans in Cyprus decreased to 725.4 million euros, compared to 743.7 million euros in the previous month.
In particular, new home loans showed a decrease of 32% to €161.4m compared to €237.7m in October, while new consumer loans fell by 26% to €17.6m compared to €23.8m in the previous month.
New loans to non-financial companies of up to €1 million decreased to €85 million from €91.5 million in the previous month, while new loans to non-financial companies of more than €1 million increased to €435.6 million from €381.9 million in October.