Interest rates in the Cypriot banking system continued rising in December in the context of the ECB’s monetary normalization policy to tackle high inflation.
According to data published by the Central Bank of Cyprus (CBC), the interest rate on deposits from households with an agreed maturity of up to one year recorded an increase to 0,35%, compared with 0,12% in the previous month, recording an increase of 0.23 basis points.
The corresponding interest rate on deposits from non-financial corporations rose by 20 basis points reaching 0.61%, compared with 0.41% in the previous month.
Interest rates for new loans continued rising, with the exception of loans over €1 million for non-financial corporations.
In particular, the interest rate on consumer credit increased to 4.21%, compared with 3.84% in the previous month, whereas rates the interest rate on loans for house purchase increased to 3.34%, compared with 2.95% in the previous month.
According to the CBC, the interest rate on loans to non-financial corporations for amounts up to €1 million increased to 4.71%, compared with 4.52% in the previous month.
On the contrary, the interest rate on loans to non-financial corporations for amounts over €1 million registered a decrease to 3.52%, compared with 4.35% the month before.