Nicosia:The interest rates for deposits, consumer loans, and mortgages witnessed an increase in August, as reported by the Cyprus Central Bank on Monday.

According to Cyprus News Agency, the Central Bank's press release detailed the key changes in interest rates for new and renegotiated deposit and loan agreements, using August 2026 as the reference month. The interest rate on term deposits for households with a duration of up to one year increased to 1.35%, up from 1.27% in the previous month. However, the rate for deposits from non-financial corporations remained steady at 1.56%.

Consumer loans saw an interest rate rise to 7.12% from 6.94% in the prior month, while loans for residential property purchases increased to 4.16%, compared to 3.78% previously. Conversely, the interest rate on loans to non-financial corporations decreased slightly. For amounts up to £1 million, the rate dropped to 4.45% from 4.47%, and for amounts exceeding £1 million, it fell to 3.67% from 4.29%.

Net new loans in August 2026 declined to £251.4 million, from a total of £390.1 million in new loans, compared to £415.0 million from a total of £686.1 million in July. Specifically, net new consumer loans decreased to £19.3 million from a total of £20.7 million, compared to £23.9 million in the previous month from a total of £26.5 million.

Similarly, net new loans for house purchases fell to £114.4 million from a total of £141.9 million, compared to £149.5 million from a total of £205.8 million the month before. Net new loans to non-financial corporations for amounts up to £1 million dropped to £35.5 million from a total of £42.8 million, compared to £52.3 million from a total of £70.4 million. For amounts over £1 million, net new loans fell to £77.0 million from a total of £178.1 million, down from £162.3 million from a total of £354.6 million in the previous month.