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Cyprus Sees Highest Term Deposit Rate of 2.45% in August Amid Rising Interest Trends

by THEFUTURE.TEAM

October 15, 2024

The Central Bank of Cyprus has reported a significant rise in term deposit rates, with the highest rate recorded at 2.45% in August 2024. This uptick in interest rates comes as part of broader trends across Europe, where central banks are responding to persistent inflationary pressures by tightening monetary policies. Cyprus, like many other countries, is adjusting to these global financial shifts, and the increase in deposit rates could signal both opportunities and challenges for its economy.

The 2.45% rate represents the highest return on term deposits in recent years, reflecting not only the response to European Central Bank (ECB) interest rate hikes but also the demand for more secure savings options among Cypriot citizens and businesses. As inflation has eroded purchasing power across the Eurozone, the appeal of term deposits, which offer a guaranteed return over a fixed period, has increased. Savers are seeking stability in an uncertain economic environment, and banks are raising rates to attract these depositors.

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However, while higher term deposit rates may benefit savers, they also point to broader financial dynamics that need to be understood within the Cypriot context. Rising interest rates are a double-edged sword. On the one hand, they offer consumers and businesses better returns on savings; on the other hand, they also raise borrowing costs, which can stifle investment and economic growth. For businesses relying on loans for expansion or operational needs, higher rates can create cash flow pressures, potentially slowing down the momentum of Cyprus’ economic recovery post-pandemic.

The Central Bank’s figures also shed light on the broader monetary environment in Cyprus. The country’s banking sector has experienced both growth and consolidation in recent years, following the reforms instituted in the wake of the 2013 financial crisis. A key question now is how these rising deposit rates will impact liquidity in the system, especially as consumers may prefer saving over spending or investing in riskier assets.

For the average Cypriot saver, this increase in term deposit rates provides an opportunity to shield their savings from the effects of inflation. However, the question remains whether this trend will be sustainable in the long term. As central banks across Europe balance inflationary concerns with the need to sustain economic growth, Cyprus will need to navigate these evolving financial waters carefully.

The increase in term deposit rates in August represents a significant moment for the Cypriot economy, potentially signalling a shift towards more conservative financial planning among businesses and consumers. As the country continues to adjust to external financial pressures, these trends will be crucial in shaping the future of the Cypriot banking sector and the broader economy.

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Cyprus: A Global Leader in Longevity and Healthcare Efficiency

by News Editor

May 9, 2025

In an eye-opening study conducted by renowned universities Brown and Harvard, Cyprus emerges as a global leader in longevity while maintaining low healthcare expenditures. The study, led by Cypriot professor Irini Papanikola, uncovers insightful data on Cyprus’s healthcare efficiency.

Key Findings

Published in the prestigious Journal of the American Medical Association Internal Medicine, the study highlights that Cyprus boasts some of the lowest mortality rates among high-income countries while ensuring affordable healthcare. This research has drawn significant attention, featured in media outlets across America and Europe.

Understanding Avoidable Mortality

The study examines avoidable mortality (deaths preventable through timely healthcare) across U.S. states and 40 high-income countries from 2009 to 2021. Remarkably, Cyprus presents some of the lowest avoidable mortality rates, showcasing the efficiency of its healthcare system even amid global challenges such as the COVID-19 pandemic.

Trends and Challenges

From 2009 to 2019, most high-income countries saw a decrease in avoidable mortality; however, this trend reversed for many, including Cyprus, during the pandemic years. The findings emphasize the critical role of robust public health systems in sustaining positive health outcomes.

The Path Forward

Despite the pandemic, Cyprus’s overall performance remains commendable. To achieve success, experts suggest addressing broader health determinants, focusing on preventive measures like road safety and mental health support through collaborative efforts.

Conclusion

Overall, Cyprus stands out as a beacon of healthcare efficiency, managing to reduce avoidable mortality with relatively low costs. This achievement underscores the country’s adeptness in providing high-quality healthcare, although continued research into population needs is vital for ongoing improvements.