Central Bank maintains CCyB rate at 1.5%

07:56 - 02 April 2025

Economy Reporter

The Central Bank of Cyprus (CBC) has decided to maintain the countercyclical buffer (CCyB) rate unchanged at 1.5%, with effect as of 14 January 2026.

In a press release, CBC notes that, in accordance with the provisions of the Macroprudential Oversight of Institutions Laws of 2015 to 2022, deemed appropriate to maintain the CCyB rate at 1.5%, which is the rate adopted as per the decision of the CBC announced on 14 January 2025. The said rate will be effective as from 14 January 2026.

The current applicable rate is set at 1% since 2 June 2024.

The countercyclical buffer rate is a macroprudential tool that the CBC has at its disposal and may use to increase the resilience of the financial system towards time varying risks that the system encounters.

The aim of the CBC when setting the countercyclical buffer rate is to create a safety buffer and increase the resilience of the financial sector during periods of stress, when losses materialise, supporting the supply of credit to the economy and mitigating the impact of the downturn of the financial cycle. The countercyclical buffer can also contribute towards reducing excessive credit growth during the upswing of the financial cycle.

(Source: CNA)

Central Bank maintains CCyB rate at 1.5%

News Feed

Read More