BANKING

Interest rates in Cyprus at historic lows

Interest rates in Cyprus at historic lows

Interest rates for corporate deposits in Cyprus fell to a new historic low from 0.02% in December 2021, while the rate for household deposits remained unchanged at 0.06%, according to data supplied by the Central Bank of Cyprus. 

Compared to November 2021 (0.05%), corporate deposit rates decreased by three basis points. Deposit interest rates have been declining for several years, as part of the policy of low or negative interest rates pursued by central banks around the world, including the European Central Bank.

Deposit rates for households remained unchanged at 0.06% and have been at this level – which is also a historic low – since September 2021.

Lending rates increased in December 2021, except for consumer loans, whose interest rate decreased to 2.90% compared to 2.97% in the previous month. The interest rate on home loans increased to 2.21%, compared to 2.13% in the previous month.

The interest rate on loans to non-financial corporations for amounts up to €1 million showed a marginal increase to 3.25%, compared to 3.24% in the previous month. For loans over €1 million rates rose to 2.84%, compared to 2.59% in November.