Cyprus deposit rates among euro area's lowest as mortgage costs rise

Central Bank of Cyprus data for August 2026 show the rate on new household deposits with an agreed maturity of up to one year rose to 1.35 per cent from 1.27 per cent in July, while the average rate on new house purchase loans jumped to 4.16 per cent from 3.78 per cent. The CBC found Cyprus deposit rates at the lower end of the euro area and said transmission of interest rate changes to deposits has been weaker in Cyprus than in almost all other euro area countries, for both households and businesses. Rates on outstanding loans and new lending, however, are broadly close to the euro area median. For households on the island this means low returns on savings alongside renewed growth in mortgage borrowing costs.