Insider Economy Deposit rates decline to a new all-time low in Cyprus

Deposit rates decline to a new all-time low in Cyprus

Key deposit rates in the Cyprus banking system declined to new all-time in August against the backdrop of the negative rates charged by the European Central Bank, as part of its monetary easing programme.

According to data published by the Cyprus Central Bank, the interest for household deposits up to one year dropped to 0.17% in August from 0.20% the previous month, following a downward path since February this year. Interest for household deposits peaked in January 2009 at 6.15%.

Interest rate for deposits from non- financial companies declined by 10 basis points in August to 0.22%.

Hellenic Bank said it will impose negative rates to corporate deposits, while Bank of Cyprus indicated it is considering negative rates to “wholesale” deposits, in a bid to offset the charges imposed by the ECB.

Furthermore, rates for consumer loans rose to 3.06% in August from 2.77% in the previous month, while interest rates for mortgages rose to 2.13% from 2.08%.

The interest rate for non-financial corporations for loans up to €1 million declined to 3.30% from 3.35% in July, whereas rates for corporate loans over €1 million declined to 3.06% in August from 3.26% in July.

(Cyprus News Agency)

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