Newsroom
Good news is finally landing in the inboxes of thousands of borrowers across Cyprus, as the Bank of Cyprus announced another interest rate cut that should make monthly loan payments a little easier to swallow.
As of April 23, the bank will lower its reference interest rate on loans tied to the European Central Bank’s (ECB) base rate, from 2.65% down to 2.40%. The 0.25% drop might not sound huge at first glance, but for nearly 12,000 customers, it means lighter monthly installments, and that’s always welcome news in today's economy.
This follows the ECB’s ongoing strategy to bring rates down, with the central rate having fallen steadily since June 2024. In total, borrowers linked to the ECB’s base rate have seen a cumulative decrease of 2.1%, with rates dropping from 4.50% to 2.40% in under a year.
And it’s not just these 12,000 borrowers breathing easier. Around 8,000 others with loans tied to the Euribor have also seen gradual relief, as that rate has slipped from a high of 4.14% in October 2023 to around 2.15% today.
In a statement, the Bank of Cyprus said the move reflects its commitment to supporting households and businesses alike. “We will continue to support the country’s real economy,” the bank said, adding that it aims to offer financing solutions with “competitive interest rates and attractive terms.”
