The Central Bank of Cyprus (CBC) released detailed data on Monday regarding interest rates at Monetary Financial Institutions across Cyprus for October 2024, revealing notable trends in mortgage loans, business loans, and deposits.

Housing Loan Rates

The average interest rate for new housing loans with floating rates and an initial fixed period of up to one year, in Cyprus increased slightly to 4.55% in October, up from 4.49% in September. In contrast, the eurozone recorded a slight decline, with the average rate dropping to 4.37%.

Among banks in Cyprus, the Bank of Cyprus Public Company Ltd recorded the highest rate at 5.20%, while Alpha Bank Cyprus Ltd offered the lowest rate at 3.34%, albeit marking an increase from 2.90% the previous month.

Other notable movements include Hellenic Bank Public Company Ltd decreasing to 3.68% from 4.12%. At the same time Ancoria Bank Ltd rose slightly to 4.39% from 4.28% and Eurobank Cyprus Ltd increased to 5.11% from 4.99%.

The overall average rate for housing loans and renegotiations increased to 4.62%, compared to 4.53% in September. Meanwhile, the eurozone average decreased to 4.37% from 4.59%.

Business loan trends

Interest rates for new business loans up to €1 million with floating rates and an initial fixed period of up to one year declined marginally to 5.58% in October, from 5.62% in September.

Alpha Bank Cyprus Ltd recorded the sharpest increase to 9.04% from 6.35%, the highest rate among banks. Ancoria Bank Ltd offered the lowest rate at 4.80%, down from 5.02%.

Other banks showed stability or minor changes, Bank of Cyprus held steady at 5.78% and Hellenic Bank edged up to 4.94% from 4.92%.

The overall average for new business loans, including renegotiations, fell to 5.45% in Cyprus, compared to 5.59% in September. In the eurozone, the average rate also dropped to 4.83% from 5.03%.

A notable decrease was observed in interest rates for business loans exceeding €1 million. The average rate fell to 4.72% in October, from 5.26% in September. The eurozone mirrored this trend, with rates dropping to 4.58% from 4.67%.

Eurobank Cyprus Ltd recorded the highest rate at 5.24%, while the National Bank of Greece (Cyprus) Ltd offered the lowest at 4.07%.

Regarding new contracts between Cypriot banks, the fluctuations in October compared to September were as follows: Alpha Bank Cyprus Ltd decreased to 5.28% from 5.43%, National Bank of Greece (Cyprus) dropped to 4.07% from 5.59%,  Hellenic Bank fell to 5.21% from 5.53%, Eurobank Cyprus Ltd declined to 5.24% from 5.40%, Cyprus Development Bank decreased to 4.80% from 5.16% (in August), Bank of Cyprus fell to 5.19% from 5.32%.

Fixed-Term Deposit Rates

The average rate for new fixed-term deposits up to one year for households in Cyprus fell to 1.76% in October, down from 1.98% in September. Comparatively, the eurozone recorded a decline to 2.74% from 2.97%.

The National Bank of Greece (Cyprus) recorded the highest rate at 2.48%. Bank of Cyprus offered the lowest rate at 1.32%, up slightly from 1.19%.

Eurobank Cyprus Ltd saw the steepest decline to 2.07% from 2.83%.

For non-financial corporations, the average rate on fixed-term deposits up to one year increased to 2.19% from 2.14% in September. However, the eurozone average remained notably higher at 3.06%, down from 3.28%.

Astrobank Public Co Ltd, which saw the largest rise, reached 3.11%, up from 2.45%.

Housing Finance Corporation recorded the lowest rate at 1.01%, down from 1.74%.