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Mortgage interest rates in Cyprus climbed to 4.91% in October 2023, according to data released by the Central Bank of Cyprus in its November 2023 edition of Monetary and Financial Statistics. Concurrently, household fixed-term deposits with a one-year maturity dropped to 1.58% compared to the previous month.
Deposit Rates:
The Central Bank of Cyprus (CBC) reported a decrease in the interest rate on deposits from households with an agreed maturity of up to one year, falling to 1.58% from 1.59% in the prior month. In contrast, the corresponding interest rate on deposits from non-financial corporations increased to 2.26%, compared with 1.67% in the previous month.
Lending Rates:
Conversely, the interest rate on loans for house purchases saw an increase to 4.91%, up from 4.42% in the prior month. Similarly, the interest rate on consumer credit rose to 6.27%, compared with 6.05% in the previous month.
The interest rate on loans to non-financial corporations for amounts up to €1 million rose to 5.77%, an increase from 5.72% in the previous month. Loans to non-financial corporations for amounts exceeding €1 million registered an increase to 6.26%, compared with 5.59% in the prior month.
Amounts of New Loans:
Despite the rise in lending rates, total new loans increased to €693.4 million in October 2023, up from €578 million in the previous month. New loans for consumption slightly increased to €24.6 million, compared with €24.5 million in the prior month. New loans for house purchase experienced a notable increase, reaching €218.1 million, compared with €172.6 million in the previous month.
New loans to non-financial corporations for amounts up to €1 million increased to €92.4 million, compared with €83.5 million in the prior month. Meanwhile, new loans to non-financial corporations for amounts exceeding €1 million rose to €348.5 million, up from €278.7 million in the previous month.
[Source: CNA]
