Cyprus deposit rates stay lowest in euro area, CBC says

The Central Bank of Cyprus said July borrowing rates were broadly in line with the euro area median, while deposit rates remained the lowest in the euro area. The rate on new housing loans fell to 3.78 per cent from 4.04 per cent in June, and household deposits with an agreed maturity of up to one year declined to 1.27 per cent from 1.42 per cent. Consumer loan rates rose to 6.94 per cent from 6.50 per cent, while deposits from non-financial corporations rose to 1.56 per cent from 1.41 per cent. The CBC linked the divergence in deposit rates to the high liquidity of Cyprus banks and the relatively small size of the domestic banking market.