Financial Services category powered by

Cyprus banks ready to adjust interest rates immediately after ECB reduces base rate, association says

The Association of Cyprus Banks has expressed its readiness to adjust interest rates tied to the European Central Bank’s (ECB) base rate immediately after the ECB’s forthcoming meeting on 12 December.

This move will directly impact the monthly instalments of their clients’ loans, the association said in a statement.

The association pointed out that the ECB is set to hold its final meeting for the year, with the majority of central bankers indicating a likely new rate cut.

“Should a further reduction be decided, it will mark the fourth rate easing since June, with the cumulative decrease exceeding 1 per cent, providing relief to borrowers and businesses,” the association said.

Moreover, the association mentioned that thousands of borrowers with loans linked to the ECB’s base rate will see their instalments reduced without delay.

It also stated that “the ECB’s interest rate reductions, following the containment of inflation, signal lower borrowing costs and indirectly boost economic growth”.

According to recent reports, the ECB is expected to reduce its deposit rate by 25 basis points (bps), equivalent to 0.25%, at its meeting on 12 December.

Read More

The recipients of the IN Business Supply Chain and Logistics Awards
Neocleous Tower nears completion: Limassol’s landmark office hub takes shape
payabl. becomes the exclusive community partner of the TechIsland FinPro Community
Economist Peter Economides on why repositioning Cyprus starts from the inside (video)
EMBIO Diagnostics joins the International WELL Building Institute
RIF announces main funding calls in excess of €45.3 million for 2025
Registered unemployed down by 10.6% in January on annual basis
Industrial turnover index down by 5.6% in November 2024
How the airports in Larnaca and Paphos will expand to serve 17 million passengers annually
2025 starts off with a leap in real estate sales