Nicosia: Deposit interest rates in Cyprus are the lowest in the eurozone, according to data published by the Central Bank of Cyprus (CBC) for June 2026. While the interest rate on deposits from households with an agreed maturity of up to one year increased to 1.42% from 1.25% in the previous month, and the interest rate on deposits from non-financial corporations rose to 1.41% from 1.31% in the previous month, the CBC notes that deposit interest rates in Cyprus are considered outliers, standing at the lower level within the Eurozone.
According to Cyprus News Agency, this might be attributed to the excess liquidity of credit institutions in Cyprus, which is among the highest within the Eurozone. For instance, the Liquidity Coverage Ratio (LCR) in Cyprus in June 2026 stood at 310%, compared to a median of 189% and a mean of 158% in the European Union in March 2026, as well as to the limited range of the banking sector in Cyprus. The interest rates on new deposits in Cyprus are at similar levels to interest rates on outstanding deposits.
In terms of lending rates, the interest rate on consumer credit decreased to 6.50% from 6.95% in the previous month. Meanwhile, the interest rate on loans for house purchases decreased marginally to 4.04% from 4.06% in the previous month. The interest rate on loans to non-financial corporations for amounts up to £1 million increased to 4.32% from 4.27% in the previous month, and for amounts over £1 million, it registered an increase to 4.07% from 3.85% in the previous month.
According to the CBC, the interest rate level on new loans in Cyprus is comparable to the Eurozone median. Specifically, the spread between the weighted average interest rate on loans to households for house purchases stands at -0.2% (lower than the Eurozone median), while the respective spread for non-financial corporations stands at 0.3%.
Pure new loans recorded an increase to £626.2 million in June 2026, up from £361.9 million in the previous month. Pure new loans for consumption increased to £25.1 million from £23.9 million in the previous month. Pure new loans for house purchases rose to £152.1 million from £145.5 million in the previous month. However, pure new loans to non-financial corporations for amounts up to £1 million decreased to £54.5 million from £63.4 million, while those for amounts over £1 million registered an increase to £387.5 million from £121.5 million in the previous month.