A slight increase in deposit interest rates received by businesses in Cyprus is shown by data published yesterday by the European Central Bank. However, they remain among the lowest in the eurozone. Deposit rates for households show stabilisation.
According to the data, the interest rate for total time deposits from Cypriot businesses rose to 1.35% in March 2026 from 1.13% in February and 1.02% in March 2025. This is the second lowest rate in the eurozone, after Bulgaria where the rate stands at 1.10%.
The highest interest rates for businesses are recorded in France (2.16%) and Slovenia (2.03%).
As regards deposit interest rates offered by banks to Cypriot households (time deposits of up to one year), these stood at 1.18% in March, compared with 1.19% the previous month. In March last year, they amounted to 1.41%. This is the fourth lowest level in the eurozone after Slovenia (0.74%), Greece (1.09%) and Bulgaria (1.15%).
By contrast, depositors receive the highest deposit interest rates in the Netherlands (2.37%), Finland (2.36%) and Italy (2.29%). The eurozone average stands at 1.82%, up from 1.78% in February.
As highlighted in announcements by the Central Bank, deposit interest rates in Cyprus are at the lowest levels in the eurozone due to the high liquidity of Cypriot banks, which ranks among the highest in the eurozone, as well as the small scale of Cyprus’s banking market.
According to the latest announcement issued by the Central Bank, the pass‑through of interest rate increases and decreases to new deposits in Cyprus appears weak compared with almost all other eurozone countries, both for households and non‑financial corporations.
It is observed that the average pass‑through rate in the eurozone during the period of monetary tightening (i.e. interest rate increases) was lower in new deposit portfolios of households and non‑financial corporations by 2.3% and 8.5% respectively, compared with the period of monetary easing (i.e. interest rate cuts). In Cyprus, the corresponding differences in pass‑through rates are higher, amounting to 5.4% for households and 19.4% for non‑financial corporations respectively.
As regards loan interest rates, these remain at lower levels than the eurozone average, recording a significant decline since 2024.
