June sees sharp deposit rate hike

08:29 - 03 August 2023

Economy

Deposit rates in Cyprus’ banking system in June recorded the highest increase since the ECB began hiking its interest rates in a bid to control soaring inflation in the Eurozone.

According to the Central Bank of Cyprus (CBC), the interest for corporate deposits with agreed maturity up to one year rose by 67 basis points, reaching 1.86% compared with 1.19% the month before.

Deposit rates for households (also with agreed maturity up to one year) rose by 42 basis points amounting to 1.21% from 0.79% in May.

But as the CBC pointed out, despite the June increases, interest rates for deposits remain among the Eurozone’s lowest, what with the Cyprus banking system’s high liquidity.

On the other end of the spectrum, the interest rate on consumer credit increased by 26 basis points to 5.23% in June, from 4.97% the month before.

The interest rate on loans for house purchase decreased marginally to 4.19%, compared with 4.21% in May.

The interest rate on loans to non-financial corporations for amounts up to €1m decreased to 5.17%, compared with 5.37% the previous month, whereas the corresponding rate on loans to non-financial corporations for amounts over €1m registered a steep decrease to 5.87%, compared with 6.35% in May.

June sees sharp deposit rate hike

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