Reduction of interest rates on deposits and consumer loans

A decrease in interest rates on deposits and consumer loans and a marginal increase in the interest rate on mortgages can be seen in the data published on Thursday by the Central Bank of Cyprus for March 2022.

The interest rate on deposits from households with an agreed maturity of up to one year recorded a decrease to 0.05%, compared with 0.07% in the previous month, while the corresponding interest rate on deposits from non-financial corporations registered a decrease to -0.01%, compared with 0.00% in the previous month.

On lending rates, the interest rate on consumer credit fell to 3.06%, compared with 3.19% in the previous month, while the interest rate on loans for house purchase increased to 2.16%, compared with 2.14% in the previous month.

The interest rate on loans to non-financial corporations for amounts up to €1 million fell to 3.14%, compared with 3.24% in the previous month. The interest rate on loans to non-financial corporations for amounts over €1 million registered an increase to 3.28%, compared with 3.16% in the previous month.

Moreover, total new loans recorded an increase to €506.7 million in March 2022, compared with €437.4 million in February.

In particular, new loans for consumption increased to €14.1 million, compared with €12.2 million in the previous month, while new loans for house purchase recorded an increase to €205.1 million, compared with €150.4 million in the previous month.

New loans to non-financial corporations for amounts up to €1 million rose to €79.3 million, compared with €43.7 million in the previous month and new loans to non-financial corporations for amounts over €1 million registered a decrease to €199.9 million, compared with €224.9 million in February.

These statistics are included in the April 2022 edition of Monetary and Financial Statistics.