Central Bank of Cyprus reports on interest rate transmission trends for April 2026

The Central Bank of Cyprus (CBC) reported that the transmission of European Central Bank interest rate changes to the Cypriot banking market remains weaker than the Eurozone average as of April 2026. Deposit interest rates in Cyprus are among the lowest in the Eurozone, with the average rate for new one-year household time deposits at 1.20%, compared to the Eurozone median of 1.8%. Total new loan volume in April decreased to €535.4 million from €730.4 million in March, with net new loans falling to €331.3 million. Regarding lending, mortgage rates dropped to 3.73% from 3.86%, while consumer loan rates rose to 7.19% from 6.79% in March. Interest rates for loans to non-financial corporations under €1 million decreased to 4.20%. The CBC noted that mortgage rates on existing balances in Cyprus are closely aligned with the Eurozone median. Analysis shows that the correlation between monetary policy tightening and easing in Cyprus is consistent with other Eurozone nations for both new and existing loan portfolios.