The average interest rate on new housing loans in Cyprus rose in August, while the cost of borrowing for businesses edged slightly lower. Rates for savers remained largely stable for households but dipped for corporate depositors, painting a mixed picture of the banking landscape, according to data released Wednesday by the Central Bank of Cyprus.
Housing Loan Costs Increase
The average interest rate on new housing loans climbed to 4.01% in August, up from 3.90% in the previous month. The rates offered by individual banks varied significantly:
- Bank of Cyprus recorded the highest average rate at 4.64%.
- Alpha Bank Cyprus offered the most competitive rate at 2.27%.
Business Lending and Deposit Rates
In the corporate sector, there was a slight easing of borrowing costs. The average interest rate on new business loans up to €1 million decreased marginally to 4.44%.
Rates on business term deposits also fell to 1.15%, remaining well below the euro area average of 1.88%.
Rates for Savers Remain Stable
For personal savings, the average interest rate on household term deposits with a maturity of up to one year remained unchanged at 1.08%. This is notably lower than the average rate of 1.71% offered across the euro area. The National Bank of Greece (Cyprus) provided the highest rate for household savers at 1.47%.
Source: Stockwatch.com.cy