Deposit rates are on the rise
An increase of 20 basis points was also noted by the corresponding interest rate for deposits from non-financial companies, which stood at 0.61% in December, compared to 0.41% the previous month.
Lending rates rose again in December, with deposit rates also moving higher amid the European Central Bank's normalization of key interest rates.
According to data from Central Bank of Cyprus, the interest rate for deposits with a term of up to one year from households, increased by 23 basis points to 0.35%, compared to 0.12% the previous month. This is the first substantial increase in household deposits in many months.
An increase of 20 basis points was also noted by the corresponding interest rate for deposits from non-financial companies, which stood at 0.61% in December, compared to 0.41% the previous month.
Loan interest rates (referring to new lending) continued their upward trend, with the exception of corporate loans over €1 million.
According to the CBC, the interest rate that on consumer loans increased to 4.21% in December, compared to 3.84% the previous month, while the interest rate on home loans increased to 3.34%, compared to 2.95% the previous month .
The interest rate for loans to non-financial companies for amounts up to €1 million showed an increase to 4.71%, compared to 4.52% the previous month.
On the contrary, the interest rate regarding loans to non-financial companies for amounts over €1 million recorded a decrease to 3.52%, in compared to 4.35% in the previous month.
