Following a decision by the Central Bank of Cyprus, as of today basic lending rates are reduced from 7% to 6.50%, that is by 0.50%. At the same time, the fluctuation of the Cyprus pound is increased against the euro from 2.25% to 15%. By the decision, interest rates on deposits are also reduced from 4% to 3.5%.

According to the Governor of the Central Bank Afxentis Afxentiou, the reasons which led to the decision were the negative effects on the economy due to the drop of the Cyprus Stock Exchange and international depression as well. The decision of the Bank is considered positive and as Mr. Afxentiou stated, European banks charge lower interests rates than Cyprus and when the time comes for Cyprus to align fully with Europe, then interest rates will be reduced even further.