Nicosia: The Central Bank of Cyprus has unveiled its latest statistics regarding the average interest rates applied by monetary financial institutions in Cyprus on deposits and loans denominated in euros, aimed at euro area residents. This data, covering the reference month of October 2025, is part of the November 2025 edition of Monetary and Financial Statistics. Comparative data for eurozone countries is also available via the European Central Bank’s Data Portal.
According to Cyprus News Agency, the new statistics reveal several key shifts in interest rates for deposits and loans. The interest rate for household deposits with agreed maturities of up to one year decreased slightly to 1.07%, down from 1.10% in the previous month. Similarly, the rate for deposits from non-financial corporations saw a marginal decrease to 1.23%, compared to 1.24% previously.
On the lending front, consumer credit interest rates rose to 6.88% from 6.46%. The interest rate for loans intended for house purchases increased to 3.73%, up from 3.63% in the previous month. This rate includes a variety of housing loan types with different risks and rates, causing fluctuations in the weighted average interest rate. For non-financial corporations, loans up to £1 million experienced an increase in interest rates to 4.39%, whereas loans for amounts exceeding £1 million decreased to 3.69%.
The report also highlights changes in the amounts of pure new loans. Total pure new loans decreased to £429.4 million in October 2025, from £447.9 million in the previous month. Notably, pure new loans for consumption rose to £23.7 million, compared to £21.2 million in September. Loans for house purchases increased to £117.5 million from £112.9 million, while loans to non-financial corporations for amounts up to £1 million fell to £50.8 million, down from £62.7 million. Loans exceeding £1 million saw a decrease to £232 million, from £246.7 million.
In a broader European context, the report notes that Cyprus’s interest rates on outstanding loans align closely with the eurozone median, with a zero spread for household loans and a 0.4% spread for non-financial corporations. For new business loans, the rates are also comparable to the eurozone median, with a -0.3% spread for household loans for house purchases and a 0.1% spread for non-financial corporations.
However, Cyprus stands out with lower deposit interest rates compared to the eurozone, attributed to the high liquidity coverage ratio of Cypriot credit institutions, which was 329% in October 2025. This is significantly higher than the EU median of 183% and mean of 162% as of June 2025, reflecting the sector’s short range and excess liquidity.