NICOSIA, Nov 11 (Reuters) - Two of Cyprus's largest banks said they would freeze increases or planned increases in interest rates charged to consumers after an angry backlash from the finance ministry.
Cyprus's finance ministry expressed "extreme displeasure" at moves afoot to raise rates to consumers and had a meeting scheduled with bankers for Wednesday.
Lender Bank of Cyprus said on Tuesday it had suspended plans to increase mortgage rates, initially expected to come into effect from Nov. 17.
A second lender, Marfin Popular said it had suspended any plans for a pricing review of its rates until Dec. 31. Marfin said it had taken into account the concerns of the finance ministry and the island's Central Bank.
Both banks said they would cut the rates on all other loans linked to the ECB key refinancing rate by 0.5 percent, effective Nov. 12.
Cypriot banks have recently started offering high yields on deposits to retain market share, adding pressure to margins.

(Writing by Michele Kambas; Editing by Greg Mahlich) Keywords: CYPRUS/RATES (michele.kambas@thomsonreuters.com; 357 22469607 Reuters messaging michele.kambas.reuters.com@reuters.net)

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