The Central Bank of Cyprus published January 2026 statistics on monetary financial institutions’ average interest rates for euro-denominated deposits and loans to euro area residents, alongside data on new lending volumes. The release shows broadly stable to slightly lower lending rates, a modest rise in deposit rates for non-financial corporations, and a sharp drop in net new lending compared with the previous month. For new business including renegotiations, the household deposit rate for maturities up to one year was unchanged at 1.20%, while the equivalent rate for non-financial corporations increased to 1.34% from 1.27%. On lending (rates for variable-rate loans with an initial rate fixation period of up to one year), consumer loan rates edged down to 7.20% from 7.22% and house purchase loans fell to 3.70% from 3.78%; the rate on loans to non-financial corporations up to EUR 1 million was unchanged at 4.32%, while loans above EUR 1 million decreased to 4.34% from 4.42%. Net new loans declined to EUR 247.3 million (out of EUR 495.9 million total new loans) from EUR 625.0 million (out of EUR 986.9 million), driven mainly by a fall in net new lending to non-financial corporations above EUR 1 million to EUR 88.1 million from EUR 406.4 million; net new house purchase lending also fell to EUR 95.7 million from EUR 135.4 million. The accompanying European comparison notes that Cyprus lending rates on outstanding balances are close to the euro area median (0.0% spread for households and 0.4% for non-financial corporations), while deposit rates are described as the lowest in the Eurozone, potentially reflecting high bank liquidity, including a Liquidity Coverage Ratio of 319% in December 2025 (against an EU median of 192% and average of 161% in September 2025). The report also highlights a shift away from variable-rate mortgages, with the share of new house purchase loans at variable rates down to 11.6% from almost 100% at the start of 2022, and the variable-rate share across new loans to households and non-financial corporations at 64%, both below the euro area median. The data are included in the February 2026 Monetary and Financial Statistics, with euro area comparators available via the European Central Bank’s Data Portal.
Central Bank of Cyprus 2026-03-06
Central Bank of Cyprus releases January 2026 MFI interest rate statistics as net new lending falls to EUR 247.3 million
The Central Bank of Cyprus released January 2026 statistics showing stable to slightly lower lending rates and a modest rise in deposit rates for non-financial corporations, with a significant drop in net new lending. Household deposit rates remained unchanged, while consumer and house purchase loan rates decreased slightly. Cyprus's lending rates are near the euro area median, but deposit rates are the lowest in the Eurozone, reflecting high bank liquidity.