The European Central Bank on Thursday is expected to take the deposit rate to 1.50% and the refinancing rate to 2.00% with Cypriot loan takers also getting affected by the imminent move.
This will be the second consecutive increase of this magnitude and brings the cost of money to its highest level since the first quarter of 2009.
Surprisingly enough, even though inflation remains high all across Europe, a portion of Cypriot households – residents of Cyprus, to be more precise – but also of businesses manage to put savings aside.
This is what Central Bank of Cyprus data released on Wednesday shows which gives a contradictory picture from the one mostly described.
That is, households finding it hard to cope with increased interest rates and the prevailing energy crisis.
Specifically, end of September deposits of households -domestic residents- increased by €112.4 million compared to an increase of €76.9 million recorded in August.
In July, household deposits increased by €46.2 million, in June by €113.2 million, in May and April by €55.1 million and €80.3 million, respectively.
