The Bank of Cyprus on Thursday announced a reduction in its reference lending rate by 0.25 percentage points, responding directly to the European Central Bank’s latest rate cut.
As of April 23, 2025, the bank’s reference rate on loans linked to the ECB’s main interest rate will decrease from 2.65 per cent to 2.40 per cent.
The bank confirmed that this reduction is expected to have “an immediate and positive effect on nearly 12,000 borrowers whose loans are tied to the ECB base rate”.
According to the announcement, “these customers will see their monthly instalments reduced accordingly”.
“This is another step that will significantly ease the repayment burden for thousands of our clients,” the bank stated.
It added that, since the ECB began lowering interest rates in June 2024, the cumulative reduction has reached 2.1 percentage points, down from a peak of 4.50 per cent.
The Bank of Cyprus also explained that a gradual easing in interest rates had already begun months earlier for approximately 8,000 additional borrowers with loans linked to the Euribor.
The Euribor, which had climbed to 4.14 per cent in October 2023, has since fallen steadily and now stands at 2.15 per cent.
“The Bank of Cyprus will continue to support the real economy, households and businesses, by offering products that meet all needs with competitive interest rates and attractive financing terms,” the bank concluded.
