Interest rates across Cyprus edged upward in August 2026 for household deposits, consumer credit, and housing loans, according to data released on Monday by the Central Bank of Cyprus (CBC). The rate increases coincided with a sharp slowdown in overall new lending volumes across both retail and corporate sectors compared to July.
August 2026 Interest Rate Movements
While borrowing costs rose for individuals, corporate loan rates experienced minor to significant reductions:
| Rate Category | August 2026 | July 2026 | Monthly Shift |
| Household Term Deposits (up to 1 year) | 1.35% | 1.27% | +0.08% |
| Corporate Term Deposits (up to 1 year) | 1.56% | 1.56% | Unchanged |
| Consumer Loans | 7.12% | 6.94% | +0.18% |
| Mortgages (Housing Loans) | 4.16% | 3.78% | +0.38% |
| Corporate Loans (up to €1M) | 4.45% | 4.47% | -0.02% |
| Corporate Loans (over €1M) | 3.67% | 4.29% | -0.62% |
Decline in New Lending Volumes
Total new credit agreements—encompassing both brand-new contracts and renegotiated loans—declined markedly during August, dropping from €686.1 million in July to €390.1 million. Net new lending (excluding renegotiated facilities) contracted from €415.0 million to €251.4 million.
1. Household & Consumer Credit Flow
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Mortgages: Net new housing loans fell to €114.4 million (from €149.5 million in July), out of €141.9 million in total agreements.
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Consumer Credit: Net new consumer loans decreased to €19.3 million (from €23.9 million in July), out of €20.7 million in total agreements.
2. Commercial & Corporate Credit Flow
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Small Business & Mid-Market Loans (up to €1M): Net new borrowing fell to €35.5 million (down from €52.3 million in July), out of €42.8 million total.
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Large Corporate Credit (over €1M): Net new financing dropped by more than half to €77.0 million (down from €162.3 million in July), out of €178.1 million total.
Source: Stockwatch.com.cy