Cyprus central bank reports shifts in June 2026 interest rates

The Central Bank of Cyprus (CBC) reported that deposit interest rates rose in June 2026, while consumer borrowing costs saw a decline. Household deposit rates for maturities up to one year increased to 1.42 per cent, up from 1.25 per cent in May, while rates for non-financial corporations climbed to 1.41 per cent from 1.31 per cent. Simultaneously, consumer credit costs fell to 6.50 per cent from 6.95 per cent, and housing loan rates edged down to 4.04 per cent from 4.06 per cent, with the bank noting that fluctuations in mortgage figures are influenced by the specific composition of new loans.

Contrasting these domestic figures, the European Central Bank (ECB) reported that corporate borrowing costs across the broader euro area rose by 15 basis points to 3.79 per cent. Eurozone household fixed-term deposit rates also reached 2.09 per cent, climbing 13 basis points. The latest data underscores a distinct gap between the Cypriot banking sector and the wider eurozone, where deposit returns remain higher despite the recent upward trend observed in local banking institutions.