The Central Bank of Cyprus published average interest rate statistics for Cypriot monetary financial institutions on euro-denominated deposits and loans to euro area residents, alongside data on new lending volumes for the reference month of December 2025. The release shows higher rates on new deposit contracts, mixed moves in lending rates, and a sharp increase in net new loans. On new business (including renegotiated contracts), household deposits with maturity up to one year rose to 1.20% from 1.13%, while the corresponding rate for non-financial corporations increased to 1.27% from 1.17%. On loans with a variable rate and an initial rate fixation period of up to one year, the consumer loan rate increased to 7.22% from 6.95%, the house purchase loan rate fell to 3.78% from 3.86%, and rates on loans to non-financial corporations decreased to 4.32% (up to EUR 1 million) from 4.39% and to 4.42% (above EUR 1 million) from 4.50%. Net new loans rose to EUR 625.0 million (of total new loans of EUR 986.9 million) from EUR 256.3 million (of EUR 565.2 million), driven mainly by lending to non-financial corporations above EUR 1 million, which increased to EUR 406.4 million net (of EUR 685.0 million total), while net new house purchase loans rose to EUR 135.4 million (of EUR 178.1 million total). In its euro area comparison, the Central Bank of Cyprus noted that lending rates on outstanding balances are close to the Eurozone median, with a zero spread for households and 0.3% for non-financial corporations, while new lending rates are broadly comparable, including a -0.3% spread for household house purchase loans and a 0.6% margin for non-financial corporations. Deposit rates were described as the lowest in the Eurozone, which it linked to high bank liquidity, citing a Liquidity Coverage Ratio of 319% in Cyprus in December 2025 versus a median of 191% and an EU average of 161% (September 2025).

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