Bank of Cyprus follows ECB's lead and reduces interest rate on loans by 0.60%

14:56 - 13 September 2024

Collage_Maker-09-Aug-2023-10-26-AM-7292.width-750

Economy

Bank of Cyprus announced that it has decided to reduce its reference interest rate on loans linked to the European Central Bank’s (ECB) Base Rate to 3.65% from 4.25%, with effect from 18 September 2024.

“This is a substantial reduction of 0.60% with a significant positive effect on customers, which will have a direct impact on the amount of their monthly loan instalments,” the bank said in an announcement. “In particular, almost 8,000 borrowers whose loans are linked to the ECB's Base Rate will see their instalments reduced immediately.”

Furthermore, it added, the bank gradually started reducing the interest rates on a further 9,600 housing loans linked with Euribor. “Indicatively, the Euribor rate has gradually diminished from 4.14% in October 2023 to 3.27% currently,” it said.

Both rates are expected to continue on a downward trajectory, BoC said, citing Central Bank of Cyprus data showing that the lending rates for Cypriot households have dropped by 0.71% from January to July, while the EU average reduction was just 0.12%.

“The de-escalation of interest rates by the ECB, following the containment of inflation, signals the reduction of the cost of money and the indirect stimulation of economic growth,” BoC said.

Bank of Cyprus follows ECB's lead and reduces interest rate on loans by 0.60%

News Feed

Read More