CYPRUS: Lending rates down in March

Lending rates retreated in March, following the Central Bank of Cyprus decision to lower the base rate by one percentage point in an effort to encourage commercial banks to follow suit and spur money flow in the market and to consumers.
Central Bank data showed that the average interest rate on deposits from households with an agreed maturity of up to one year continued its downward trend falling to 1.73% from 2.30% in February.
The deposit rate for non-financial corporations dropped for the second consecutive month, to 1.57% from 2.26% in February.
Interest rate on consumer loans dropped for the third consecutive month, to 4.69% in March from 5.19% the previous month, while the interest on home loans fell to 3.76% from 4.45% in February.
The interest rate on loans to non-financial corporations for amounts over €1 mln dropped to 4.28% from 5.0% in the previous month.