Consumer Credit Rates Fell to 6.50% From 6.95%, and Housing Loan Rates Slipped to 4.04% From 4.06%.

Cyprus deposit rates rose while consumer borrowing costs eased in June, with pure new lending surging on large corporate loans, the Central Bank of Cyprus (CBC) reported on Monday. Household deposit rates with up to one-year maturity climbed to 1.42% from 1.25% in May, while rates for non-financial corporations rose to 1.41% from 1.31%. Consumer credit rates fell to 6.50% from 6.95%, and housing loan rates slipped to 4.04% from 4.06%.

The CBC noted that housing loan rates can fluctuate due to portfolio composition, including primary residences and holiday homes. Corporate loan rates for up to €1 million rose to 4.32% from 4.27%, while those exceeding €1 million increased to 4.07% from 3.85%. Pure new lending reached €626.20 million in June, up from €361.90 million in May, with total new lending including renegotiations at €831.30 million versus €594.50 million.

New consumer lending rose modestly, with pure new loans at €25.10 million and total at €29.60 million. Pure new housing loans increased to €152.10 million, with total at €201.10 million. Pure new corporate loans up to €1 million fell to €54.50 million, while those exceeding €1 million surged to €387.50 million from €121.50 million, with total at €512.50 million.

Compared with the eurozone, Cyprus's loan rates are broadly aligned with averages, but deposit rates remain among the lowest. For outstanding loans, household rates matched the eurozone median, while corporate rates were 0.4 percentage points above. The CBC found that Cyprus's response to ECB monetary policy cycles was broadly in line with the euro area, though transmission to new corporate lending appeared weaker. Eurozone-wide, tightening transmission exceeded easing by 32.9% for housing and 17.3% for corporate loans, but in Cyprus the difference was just 0.8% for households, and corporate transmission was 12.6% lower during tightening.