Cypriot banks on May significantly increased interest rate they pay to depositors on the back of the rising interest rates imposed by the ECB in a bid to curb inflation.

According to data released by the Central Bank of Cyprus (CBC) lending rates also continued their upward trend.

Interest rates for households with an agreed maturity of up to one year rose to 0.79% recording an increase of 38 basis points, compared with 0.41% in the previous month. The current rate is the highest since August 2018.

Rates for corporate deposits rose by 46 basis points in May to 1.19% reaching the highest point since December 2017.

Furthermore, lending rates continued their upward trend following the trend set by the ECB, with the exception of rates for housing loans which declined to 4.21% in May from 4.45% the month before.

According to the CBC, rates for consumer credit increased to 4.97%, compared with 4.85% in the previous month, whereas the interest rate on loans to non-financial corporations for amounts up to €1 million increased to 5.37%, compared with 5.31% in the previous month.

The interest rate on loans to non-financial corporations for amounts over €1 million registered an increase to 6.35%, compared with 5.41% in the previous month.