Deposit rates in the Cyprus banking system in June marked the highest increase since the ECB began hiking its interest rates in a bid to control the soaring inflation in the Eurozone, according to data released on Wednesday by the Central Bank of Cyprus (CBC).

The interest for corporate deposits with agreed maturity up to one year in June 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) in June rose by 42 basis points amounting to 1.21% from 0.79% in May, the CBC said.

Despite the June increases, interest rates for deposits remain among the lowest in the Eurozone, as the Cyprus banking system is marked by high liquidity.

Lending rates decline excluding consumer loans

According to the CBC, 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.

Corporate loans marked higher declines from the level of the previous month. According to the CBC, the interest rate on loans to non-financial corporations for amounts up to €1 million decreased to 5.17%, compared with 5.37% in the previous month, whereas the corresponding rate on loans to non-financial corporations for amounts over €1 million registered a steep decrease to 5.87%, compared with 6.35% in May.