The Central Bank of Cyprus (CBC) has reported an increased degree of convergence between the average interest rates of Cyprus credit institutions and those of the eurozone for both deposits and loans.

The CBC stated that there is an increased degree of convergence between the average interest rates of credit institutions in Cyprus and the corresponding average of credit institutions in the eurozone, covering both deposits and lending activity.

According to interest rate data for deposits and loans for each credit institution in Cyprus published by the CBC with reference month December 2025, interest rates on new household time deposits up to one year stood at an average of 1.20 per cent across all banks in Cyprus, compared with a eurozone average of 1.77 per cent.

A similar pattern was observed in new time deposits up to one year from non-financial corporations, which in Cyprus reached an average of 1.27 per cent across all Monetary Financial Institutions, compared with 1.93 per cent in the eurozone.

Interest rates on new housing loans to households who are eurozone residents, denominated in euro and regardless of the initial rate fixation period, averaged 3.11 per cent across all banks in Cyprus, compared with 3.32 per cent in the eurozone.

The CBC stated that, with the aim of further strengthening transparency, it has been publishing detailed interest rate data for deposits and loans for each credit institution since July 2024 transparency initiative.

The monthly publication of detailed interest rate data contributes to easier public information, the CBC said, providing households and businesses with direct access to more comprehensive information.

“Despite the fact that it is early to draw final conclusions, the results of this effort appear to be reflected in the published interest rate data,” the central bank said.

“More specifically, an increased degree of convergence is observed between the average interest rates of credit institutions in Cyprus and the corresponding average of credit institutions in the eurozone, both for deposits and loans,” the CBC added.

The publication includes detailed weighted average interest rate data based on information submitted by credit institutions to the CBC for a broad range of categories.

These categories cover new household time deposits up to one year, new time deposits up to one year from non-financial corporations, and new housing loans to households.

They also include new loans up to €1 million to non-financial corporations and new loans above €1 million to non-financial corporations.

In addition, they cover existing household time deposits up to two years, existing time deposits up to two years from non-financial corporations, existing housing loans with a maturity over five years to households, and existing loans with a maturity over five years to non-financial corporations.