Bank of Cyprus follows ECB lead and reduces lending rates

11:43 - 06 June 2025

Financial Services

Bank of Cyprus (BoC) has announced a reduction of its lending rates, a move expected to benefit an estimated 12,000 borrowers whose loans are tied to the European Central Bank’s (ECB) base rate.

The decision follows the ECB’s recent monetary easing decision.

The bank said it will lower its rate from 2.40% to 2.15%, with the change taking effect from 11 June 2025.

“This is a 0.25 percentage point cut that will once again have a significantly positive impact on our clients, especially in the amount of their monthly loan instalments,” the bank said in a statement.

According to BoC, since the ECB began cutting rates in June 2024, the cumulative decrease of its interest rates has now reached 2.35 percentage points, down from 4.50% to 2.15%. It added that another 15,800 borrowers with loans linked to the Euribor benchmark have been on the decline for some time.

Euribor peaked at 4.14% in October 2023 but has since fallen steadily to its current level of 2.05%.

“The Bank of Cyprus continues to support the real economy of the country, households, and businesses by offering products that meet all needs with competitive interest rates and attractive financing terms,” the statement said.

Bank of Cyprus follows ECB lead and reduces lending rates

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