Nicosia, Cyprus. Cyprus recorded some of the lowest deposit interest rates in the eurozone in March 2026, while lending rates remained broadly aligned with euro area averages, according to the Central Bank of Cyprus. Separate data showed inflation in Cyprus rose to 2.8% in April 2026.
Deposit and lending rates
The Central Bank of Cyprus (CBC) said interest rates on outstanding loans in Cyprus remained close to the respective eurozone median.
The spread between Cyprus and the eurozone median stood at zero for household loans and 0.4 per cent for loans to non-financial corporations.
The CBC said deposit interest rates in Cyprus remained outliers within the eurozone, standing at the lowest levels among member states.
According to the CBC, this was linked to the excess liquidity of Cypriot credit institutions, which remains among the highest in the eurozone.
Inflation rises in April 2026
Cyprus’ inflation rate rose to 2.8 per cent in April 2026, according to figures released by the Cyprus Statistical Service (Cystat), with petroleum products and transport costs recording the sharpest increases.
The consumer price index (CPI) increased by 1.73 points in April 2026, reaching 102.80 units compared with 101.07 units in March 2026.
Cystat said that from January 2026 the base year for the index changed to 2025, with a set value of 100 units.
The statistical service added that the index reference year had previously been 2015, with a value of 100 units, used between January 2016 and December 2025.
Compared with April 2025, the largest increases among economic categories were recorded in petroleum products, which rose by 18.3 per cent, and agricultural goods, which increased by 9.6 per cent.
How do low deposit rates and rising inflation affect your savings decisions?