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 (CBC).
The CBC said interest rates on outstanding loans in Cyprus remained close to the respective eurozone median.
Loan rates close to eurozone median
The CBC said 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.
Among lending categories, the interest rate on consumer credit fell to 6.79 per cent in March from 7.12 per cent in February.
Deposit rates remain outliers
The central bank said interest rates on deposits in Cyprus remained outliers within the eurozone, standing at the lowest levels among member states.
The CBC linked the low deposit rates to the excess liquidity of Cypriot credit institutions, which it said remains among the highest in the eurozone. It reported that the liquidity coverage ratio (LCR) in Cyprus stood at 315 per cent in March 2026, compared with a median of 186 per cent and an average of 163 per cent across the European Union in December 2025, the latest available data.
The CBC also attributed low deposit rates to the relatively small size of the Cypriot banking sector.
March deposit rate movements
The interest rate on household deposits with an agreed maturity of up to one year fell marginally to 1.18 per cent in March from 1.19 per cent in February.
The corresponding rate for deposits from non-financial corporations increased to 1.39 per cent from 1.19 per cent in the previous month.
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