The Central Bank of Cyprus has published updated statistics on the average interest rates of the country’s monetary financial institutions for November 2025. The data cover euro-denominated deposits and loans. These figures are particularly important against the backdrop of the European Central Bank’s ongoing policy, which in 2024–2025 has kept rates at a relatively high level in an effort to curb inflation and stabilize financial markets. For Cyprus, this means more expensive borrowing and increased attention from depositors to deposit yields.
How euro deposits have changed
The interest rate on fixed-term deposits with a maturity of up to one year for households in November 2025 rose to 1.13% from 1.07% a month earlier. This points to a gradual increase in returns for retail savers, making holding funds in euros in Cypriot banks more attractive, especially amid volatility in global markets.
At the same time, the rate on similar deposits from non-financial corporations declined to 1.17% from 1.23% in the previous month. This trend reflects a more cautious approach by banks toward corporate clients and may be linked to changes in liquidity structure and demand for short-term deposits.
Loans: consumer, mortgages, and business
The interest rate on consumer loans in euros increased to 6.95% from 6.88% a month earlier. This confirms that borrowing for personal needs remains expensive, and households should approach new credit commitments with particular care.
The rate on mortgage loans for home purchases rose to 3.86% from 3.73% in the previous month. The Central Bank notes that banks’ mortgage portfolios include different types of loans—primary residences, holiday homes, and other properties—each carrying different risk and priced accordingly. Therefore, the weighted average rate may fluctuate even without direct changes in banks’ tariffs, which is important for homebuyers and investors to take into account.
For non-financial corporations, euro loans of up to €1 million held steady at 4.39%, indicating relative stability in financing conditions for small and medium-sized businesses. However, loans above €1 million became noticeably more expensive: the rate rose to 4.50% from 3.69% a month earlier. This is explained by the predominance of higher-risk borrowing and reflects banks’ caution in the large corporate segment.
New lending and borrower activity
In November 2025, net new euro lending volume declined to €256.3 million out of a total of €565.2 million in new loans. A month earlier, this figure reached €429.4 million out of a total of €624.9 million. This trend points to a slowdown in credit activity, which may be linked both to high interest rates and to more cautious expectations among businesses and households.
Net new consumer lending fell to €20.4 million out of a total of €23.4 million in new loans, compared with €23.7 million out of €25.1 million a month earlier. New mortgage lending for home purchases also decreased to €113.4 million out of €155.7 million, compared with €117.5 million out of €158.7 million in the previous month.
Loans to non-financial corporations of up to €1 million declined to €48.3 million out of €59.6 million, compared with €50.8 million out of €68.3 million a month earlier. The most notable contraction occurred in the segment of large corporate borrowing: net new loans above €1 million fell to €69.6 million out of €320.8 million, compared with €232 million out of €359.6 million in the previous month.
What this means for the Cyprus market
The combination of higher euro lending rates and lower volumes of new borrowing indicates a more cautious behavior model for both banks and borrowers. For individuals, this means the need to take a more measured approach to mortgages and consumer credit, while for businesses it means planning investment projects and funding sources more carefully. At the same time, the gradual increase in deposit yields makes euro savings more attractive, which could support bank liquidity in the coming months.
Given that the ECB’s policy remains tight, the Cyprus market will likely continue to be characterized by moderate credit activity and heightened attention to borrower quality. For anyone planning to borrow or place funds in euros, the November 2025 data serve as an important reference point for financial decisions in 2026.