Interest rate trends in Cyprus diverged in June 2025, with household borrowing becoming more expensive while business lending costs declined, according to the latest data from the Central Bank of Cyprus. Deposit rates for both households and non-financial corporations saw minimal movement during the same period.
Household Borrowing Costs Rise
Consumer loan rates for households increased to 7.01% in June, up from 6.77% in May, while housing loan rates climbed to 3.95% from 3.81%.
The Central Bank highlighted that the housing loan portfolio includes various loan types—covering primary residences, holiday homes, and other property financing—which carry different risk profiles. Monthly changes in the portfolio mix can influence the weighted average rate, even if the underlying rates offered by banks remain stable.
Business Loan Rates Decline
By contrast, lending to businesses became slightly cheaper. Rates on loans up to €1 million fell to 4.39% from 4.67%, while loans exceeding €1 million dropped to 4.04% from 4.65%.
Deposit Rates Largely Stable
On the deposit side, household time deposits of up to one year recorded a minor decrease to 1.13% from 1.16%, whereas deposits held by non-financial corporations remained unchanged at 1.18%.
When compared to the euro area, Cypriot loan rates were marginally higher. Household loans stood at 4.09% versus 4.00% in the eurozone, and loans to non-financial corporations were 4.36% compared to the euro area average of 3.92%.
Source: Stockwatch.com.cy