Central Bank of Cyprus reports interest rate shifts and loan volume decline in August 2026

Data from the Central Bank of Cyprus for August 2026 reveals a divergent trend in interest rates for new loan agreements and renegotiations. Mortgage rates rose to 4.16% from 3.78% in July, while consumer loan rates increased to 7.12% from 6.94%. Conversely, business loans for non-financial corporations saw a decrease, with rates for amounts up to €1 million falling slightly to 4.45% and rates for amounts exceeding €1 million dropping to 3.67% from 4.29%.

Household time deposits with maturities up to one year saw interest rates rise to 1.35% from 1.27%, whereas rates for non-financial corporations remained steady at 1.56%. The market also experienced a significant contraction in new credit activity. Net new loans fell to €251.4 million in August, down from €415 million in July. The total volume of new loans, which includes renegotiated contracts, decreased to €390.1 million from €686.1 million in the previous month, with declines observed across all monitored lending categories.