Cyprus’s mortgage lending rates remained elevated in September, with the average rate across all monetary and financial institutions rising to 4.49% from 4.33% in August, the Central Bank of Cyprus reported on Tuesday.
The increase comes despite the European Central Bank’s recent trend towards lower interest rates.
Bank of Cyprus and Eurobank raised their rates in September, while Astrobank and Hellenic Bank reduced theirs. The Cyprus Development Bank topped the list with 5.22%, up from 4.96% in August, followed by Bank of Cyprus at 5.11%, up from 4.36%.
Corporate lending rates for loans up to one million euros also increased, reaching 5.61% in September from 5.56% in August. Banque SBA offered the highest rate at 7.96%, while Hellenic Bank had the lowest at 4.92%.
Household deposit rates saw an uptick, with the average rate rising to 1.98% in September from 1.79% in August. Eurobank Cyprus offered the highest deposit rate at 2.83%, while Bank of Cyprus offered the lowest at 1.19%.
The data shows a widening gap between lending and deposit rates at Cypriot banks, with mortgage rates remaining more than twice as high as deposit rates.
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