Interest rates (new business) provided to depositors by Cypriot banks declined in July, while lending rates continued their rising trend, driven by the rate hikes imposed by the European Central Bank.

According to data released by the Central Bank of Cyprus (CBC), the interest rate on deposits from households with an agreed maturity of up to one year recorded a decrease by 34 basis points to 0.87%, in July from 1.21% in the previous month.

The corresponding interest rate on deposits from non-financial corporations registered a decrease of 18 basis points to 1.68%, compared with 1.86% the month before.

Furthermore, the interest rate on consumer credit increased to 5.51%, compared with 5.23% in the previous month, while rates for new loans for house purchase increased to 4.50%, compared with 4.19% in the previous month.

According to the CBC, the interest rate on loans to non-financial corporations for amounts up to €1 million rose to 5.65%, compared with 5.17% in the previous month, whereas rates for loans to non-financial corporations for amounts over €1 million increased to 6.33%, from 5.87% in the previous month.