Cyprus among countries where banks passed on fewer ECB rate rises to savers

Cyprus was among the euro area countries where banks increased deposit rates less aggressively following the European Central Bank’s (ECB) interest rate hikes, according to a new ECB working paper examining how banks priced deposits between 2007 and 2024.

The research found that banks in Cyprus and other southern euro area countries generally passed on a smaller share of ECB rate increases to savers than banks in northern Europe, highlighting significant differences in how monetary policy...